Sterling Euro exchange rates have hit 4 week highs to buy Euros following the high court ruling on Thursday which means that Article 50 has to be invoked by parliament rather than by Prime Minister Theresa May.
When Theresa May announced in early October that the UK would trigger Article 50 in March 2017 this caused the Pound to plummet close to 5 year lows vs the single currency but Thursday’s announcement saw the Pound gain by 2 cents from the high to the low.
However, the government will challenge the High Court ruling by going to the Supreme Court with 11 judges due to hear the appeal in early December. Even if they win the appeal this could delay the negotiations to leave the European Union and this could easily run past March.
UK economic data has been very strong recently with positive signs from GDP figures and strong Retail Sales data but clearly the currency markets are being influenced by what is happening politically in the UK. Therefore, to me I think these gains could be short lived.
By this time next week we should know who will become the next US president and whatever the result the currency markets are likely to be extremely volatile with GBPEUR rates moving in all sorts of directions.
If you’re in the process of buying a property in the Eurozone in the next few weeks or months then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date. This is especially useful if you’re on a tight budget or simply want to know the cost in Sterling of your foreign property early on in the process.
Having worked in the foreign exchange industry since 2003 I am confident not only of offering you better exchange rates when buying or selling currency compared to using your own bank but also help you with the timing of your transfer.
If you have a currency transfer to make and would like further information or a free quote then contact me directly and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org
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