For euro buyers that have sterling to transfer, exchange rates have increased to 5 week highs off the back of the High Court Brexit ruling and Donald Trump becoming President – Elect of the United States of America.
The European Central Bank has warned that political uncertainty in the Eurozone and globally is putting the Eurozone financial stability at risk and this could reignite the 2009 debt crisis.
December the 8th the European Central Bank will give further guidance to the Quantitative Easing program. Many economists believe an extension is just around the corner. It was only earlier in the week that two of the key figure heads within the ECB stated the central bank needs to continue to support the Eurozone economy with its ultra-loose policy. In my opinion this statement cements expectations that an extension will occur this month.
Couple the above with the chances that the FED will raise interest rates in December which in turn would cause a Euro sell off to buy dollars, I expect rates will improve for euro buyers that are holding onto sterling.
However the Supreme Court ruling for the UK is set to start early December with the decision to be released in January. In January the Brexit will only be 2-3 months away therefore I expect pressure will accumulate on the pound and therefore GBPEUR exchange rates will begin to fall.
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