We are now just over 3 months since the Brexit vote and we have seen huge losses for Sterling vs the Euro since the vote to leave the European Union. The uncertainty surrounding the UK economy has also caused the Pound’s exchange rate to really feel the pressure against both the Euro and the US Dollar which have hit 3 year lows and 31 year lows respectively.
More recently the Pound has again been rocked by the suggestions that Article 50 could get triggered early next year.
According to our very own Foreign Minister Boris Johnson he has suggested that the UK is gearing up to start the negotiations but as yet no official announcement has come from UK government. However, in my opinion there is no smoke without fire so I expect some form of announcement to come soon.
This week we have seen news that Deutsche Bank is feeling the pressure caused by a huge fine of US$14bn from the US Department of Justice for the mis-selling of mortgage backed securities. This has caused the share price in the German bank to plummet this morning but as yet this has had little effect on GBPEUR exchange rates.
The risks for the Eurozone is that the bank may have to approach the European Central Bank to ask for a bailout but if this is allowed to happen then I would not be surprised to see many of the other banks across Europe to ask the ECB for further funds themselves.
UK GDP just published this morning has seen the figures revised upwards which would typically result in Sterling strength but we have seen little movement since the announcement. Therefore, it is clearly the political landscape that is dominating the movement for Sterling.
If you’re concerned about what is happening to GBPEUR rates and need to transfer currency in the next few weeks it may be worth looking at a forward contract which allows you to fix an exchange rate for a future date and therefore guarantees you a fixed price regardless of what happens to exchange rates. This can be particularly useful if you’re in the process of purchasing a property in Europe.
If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Having worked in the industry since 2003 I am confident that I can offer you a saving as well as help with the timing of your transfer.
Email me directly or fill in your details below for a free quote. Tom Holian firstname.lastname@example.org