With the US Presidential Election in full swing and only 9 days away, past history tells us there is a good chance investors will sell off their US dollars and move their assets into another currency to manage risk. This is even more likely as Hilary Clinton is in the spotlight again due to her email scandal that the FBI are looking into.
As EURUSD is the most traded currency pair globally, the demand for the Euro should rise in the upcoming weeks therefore GBPEUR will continue to fall.
As for the UK the Monetary Policy Committee from the Bank of England are set to vote on interest rates this Thursday. The MPC have already cut rates from 0.5% to 0.25% since the UK public decided to vote out of the EU and there is a good chance a further cut could to 0.05% could occur as early as this Thursday.
The only saving grace is that UK GDP numbers last week exceeded expectation which could sway some voting members to hold off cutting rates until next week. Either way cut or no cut I expect a few members of the MPC to vote for a cut and consequently GBPEUR will continue to fall and therefore a drop below 1.10 looks likely.
With exchange rates continuing to fall, a popular option for clients buying euros is to buy their euros up front. If all of your sterling is not available to you at the moment (for example you are selling a UK property) you can still secure your exchange rate now and pay later. This is known as a forward contract.
For more information in regards to the currency market, forward contract or how I can achieve you the best rates possible feel free to email me with your requirements, timescales, the best number to reach you on and I will give you a call to discuss your options firstname.lastname@example.org.
** 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! **