The Pound has seen very minor gains against the Euro during this week but to me these gains are likely to be short lived. As I’ve been predicting in many of my previous articles recently the Pound has come under huge pressure since the Brexit and more recently since the announcement that Article 50 will be triggered by March 2017.
In the last month alone Sterling Euro exchange rates have fallen by over 10 cents causing a huge loss of confidence in Sterling against all major currencies.
According to releases made by analysts at Credit Suisse they have predicted Sterling Euro rates to fall to as low as 1.05 and GBPUSD rates to fall to as low as 1.10. The prediction is based on the likelihood that the UK will have a ‘hard’ rather than a ‘soft’ Brexit.
During October both Bank of England governor Mark Carney and deputy governor Ben Broadbent have claimed not to have Sterling’s value at the top of their priorities and instead will keep the focus on UK inflation levels. The target for the BoE is for 2% and this week we saw inflation coming out at 1% which gave Sterling a brief lift against the Euro but the gains were short lived.
With both Carney and Broadbent seemingly not too perturbed by the fall in the value of Sterling then I think this could open the door for another interest rate cut at next month’s central bank meeting which could cause the Pound to fall even further than current levels.
Indeed, if you’re selling Euros we are now at the best level to do so since 2011.
However, if you’re in the process of buying a property on the continent before Article 50 is triggered in March it may be worth looking at a forward contract which allows you to fix an exchange rate for a future date for a small deposit. If GBPEUR rates continue to tumble this could potentially be very suitable.
I have personally worked in the foreign exchange industry for 13 years so I’m confident that with my experience not only can I offer you better exchange rates than using your bank but also help you with the timing of your purchase.
If you’re buying or selling Euros and want further information or a free quote then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
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