Sterling Euro exchange rates have hit a 4 week high at the end of yesterday’s trading session after the news broke on Thursday that the high court has challenged Article 50. Essentially this means that Prime Minister Theresa May is unable to trigger Article 50 with parliament’s support.
A large number of MPs were anti-Brexit in the first place so this judgment ruling has put a real spanner in the works for May’s plans to start the negotiations to leave the European Union in March 2017.
The government has since announced that they will be challenging the ruling which will take place in early December. A total of 33 million people voted back in June and there would clearly be huge civil unrest if the vote is ignored.
With the appeal in the Supreme Court taking place in December the answer may not come out until January which could delay things even if or when they get the approval.
The Pound gained against both the Euro and the US Dollar on the news which took exchange rates to their best level for GBPEUR since early October providing a window of opportunity for Euro buyers.
However, the gains could very easily be short-lived as although economic data has started to improve the political landscape is very uncertain and since June it is clear that political factors are causing Sterling exchange rates to move much more than economic data.
Therefore, I think the Pound’s strength particularly against the Euro may not stay around for very long.
If you’re in the process of buying a property in Europe before the end of the year 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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