Less than 12 months ago GBPEUR exchange rates were fluctuating above 1.40. At the end of trading on Friday GBPEUR finished in the 1.11s thats a fall of 29 cents in 12 months.
There are many reasons why rates have plummeted but one in particular in the headlines daily is the Brexit. For people that are buying euros in the future the golden question many ask is over time will rates reach highs that we were a custom to 12 months ago?
Personally I believe GBPEUR exchange rates are going to get worse before they potentially get better. UK Prime Minister Theresa May has announced that Article50 will be triggered in March and therefore the UK will start the process of leaving the EU which is set to take at least 2 years.
A major talking point this week has been will the UK opt for a hard or soft Brexit, the major difference is that the UK will not have free access to the single market if they opt for a hard Brexit. Towards the end of the trading week Donald Tusk announced that its a hard Brexit or no Brexit which is forcing Theresa May’s hand.
With many of the leading Banks forecasting that GBPEUR will continue to fall to parity by 2017 and I have to agree. If I were buying euros within the next 6 months I would cut my losses and purchase the next time the pound spikes against the euro. If you do not have all of your sterling available you can still purchase your euros now by using a forward contract and you pay later for it.
For euro sellers buying the pound, I would get in contact today let me know your timescales and I will monitor the market for you and keep you up to date with market movement.
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 firstname.lastname@example.org. 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! **