Will the Brexit negotiations cause problems for the Pound? (Tom Holian)

Sterling against the Euro has been struggling recently owing to what is happening politically and at the time of writing this article the Tories have yet to form an agreement with the DUP. Indeed, when the government had to form a coalition previously it took 20 days to organise.

As we go into next week the Brexit negotiations will start which is almost 12 months to the day since the vote to leave the European Union.

As there is no current majority government there has been no confirmation whether the UK will opt for a hard or a soft Brexit and until this issue is sorted I think the Pound will struggle against the Euro.

We saw a brief recovery in GBPEUR exchange rates on Thursday when the Bank of England confirmed a 5-3 split in favour of keeping interest rates on hold.  This surprise revelation helped to provide the Pound with some small gains vs the single currency but to me I think the gains will be short lived.

Therefore, if you need to send money to Europe it may be worth taking advantage of the current rates. If you don’t have the full amount of money available at the moment it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date for a small deposit.

Having worked in the foreign exchange markets since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better exchange rates compared to using your own bank but also help you with the timing of your transfer of currency.

If you would like further information or a free quote when buying or selling Euros and would like to save money then contact me directly and I look forward to hearing from you.

Tom Holian teh@currencies.co.uk

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk