The main story that has been dictating GBPEUR exchange rates throughout 2016 has been the Brexit. GBPEUR exchange rates the day before the vote fluctuated in the 1.32s. Once the UK public decided the fate of the UK remaining part of the EU GBPEUR exchange rates have dropped into the 1.15s.
For people that hold Euros in a bank account and are waiting for the perfect time to buy sterling, this is an opportunity that is seriously worth considering. €200,000 converted into sterling now compared to pre Brexit you will receive an additional £18,000!
However there is a chance rates could continue to fall. UK Prime Minister Theresa May has announced that Article50 will be triggered in March 2017 and she plans to introduce a “Great Repeal Bill” at the next Queens speech. This effectively overturns the act that brought the UK and EU together.
In other news Germany’s leading bank Deutsche Bank is under severe pressure as they face a $14bn fine for mis selling mortgage-backed bonds. If they have to repay the debt, I find it difficult to see how they will raise the funds and I wouldn’t be a surprise to see the German Government bail out the bank which will cause outrage across Europe especially in Italy.
If I had to make a prediction for the next 30 days I expect GBPEUR overtime to continue to fall, however if Deutsche bank receive a bailout this will be the spike euro buyers will want to take advantage of. However its a huge risk for euro buyers to wait, hoping that the leading German bank goes under.
If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you email@example.com. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **