Difficult week ahead for buying Euros with Sterling owing to Article 50 issues (Tom Holian)

We ended the week with Sterling Euro exchange rates coming under pressure following comments from our Foreign Minister Boris Johnson who has claimed that the UK are getting ready to start the triggering of Article 50 early next year.

On the previous weekend European Council President Donald Tusk suggested that in a meeting with Theresa May she mentioned that the UK would be looking at starting negotiations by February 2017. However, the story did’t really go anywhere during this week and it wasn’t until Boris Johnson spoke out that the Pound has really come under pressure against the Euro.

We have now hit the lowest level to buy Euros since August 2013 but on the flip side if you’re buying Sterling with Euros this is good news and we could possibly see rates improving for Euro sellers going into next week.

The uncertainty caused by the Brexit vote in June saw Sterling fall by over 10 cents in a single day and with Article 50 looking more likely to actually happen with a possible start date in 2017 this could see Sterling exchange rates fall even further.

The media reports over this weekend are likely to focus on Boris’s comments and it will be interesting to see how this is reflected in confidence for Sterling exchange rates.

Personally I cannot see the Pound make any gains in the short term until this is resolved and we have a plan going forward.

Uncertainty for currency is what causes it to weaken and the uncertainty of what will happen to the UK and its relationship with the European Union will inevitably weigh heavily on Sterling Euro exchange rates.

I have worked in the industry and will be celebrating my 13th anniversary on Thursday and have worked through the credit crunch, various general elections both here and in Europe and the Scottish referendum. The foreign exchange market is cyclical but at the moment it is difficult to see any positive movements for Sterling Euro rates at least in the short term.

Next Friday the UK releases second quarter GDP figures and I think this could see Sterling Euro rates fall even further. If you need to buy Euros in order to protect yourself against further losses then you may wish to consider buying a forward contract which allows you to fix an exchange rate for the future.

Alternatively, have you considered a Stop Loss which means if the market falls further then you will have a guaranteed lowest level. You can choose an exchange rate that you don’t want to buy below which also is used to protect any further falls on your price.

To find out more and if you need to make a currency transfer soon then feel free to contact me for a free quote. Having been working in the industry for 13 years I am confident of saving you money on your exchange rates as well as helping you with the timing of your trade. 

Feel free to contact me by emailing me directly Tom Holian [email protected] or fill in the form below. I look forward to hearing from you.

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