The first week of 2017 has been largely quiet for buying Euro exchange rates, allowing many some respite as they sink back into their work routine after the festive period.
This behaviour on the Sterling Euro pairing is suggestive of a market awaiting some very important news.
I hate to flog a dead horse for our regular readers by consistently addressing the upcoming Supreme Court verdict in the UK. But the mechanics and trajectory of the Brexit will govern Sterling’s value for years to come, so we will all have to get used to this focus on the ins and outs of the Leave process. The final verdict itself is set to be released soon.
As in November, financial markets should react well to the decision to involve Parliament in the Brexit process.
Parliament’s involvement in triggering Article 50 plays well for the Pound’s attractiveness, and therefore value against its counterparts, for multiple reasons.
For one it means the aims and current state of negotiations moving forward to leave the EU should be publically available…at least to some degree. Should Parliament have to vote on Article 50, they will wish to be consulted on its current status and key decisions being made. This means investors as a whole can move forward with confidence that they will not be left in the dark on the trajectory of the UK economy, and therefore the value of the Pound, in the medium term.
Therefore, they are more likely to buy up Sterling and hold onto it – improving its value through increased demand.
There is also the greater likelihood for a softer Brexit which many in Parliament are calling for. Whatever your personal politics, the global consunses from a financial standpoint shares these views, and is another factor in why Sterling should be trading at a higher value should the expected matching verdict be finally published.
The expectation is that the Supreme Court will uphold the initial conclusion of the Judicial court a few months ago. This should see GBP/EUR rise to the tune of 1.5 cents, as it did in November.
The verdict is expected between the 12-17th of January, so if you are a Euro seller, it may be wise to secure your currency ahead of this period, to avoid seeing your transfer gain greater expense, as it did throughout the Novemeber period last year.
To top off what is likely to be a boon to Euro buyers to begin the year, we are also expecting very positive economic performance information for the UK economy on Wednesday.
This will focus on manufacturing and industrial sectors, which have seen a resurgence since the hefty devaluation of the Pound in June, and general growth figures for the UK economy as a whole will be delivered for markets to trade on. Both, as they have on multiple occasions since June, are expected to be positive and boost Sterling against the Euro, and most other currencies.
So, in short, very good news is expected to be provided for Euro buyers in the short-term. Two major events are expected to make your transfers more profitable, which is why anyone looking to conduct a Sterling purchase, even over the next few months, should look to how you can secure these still historically favourable exchange rates before Wednesday.
If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well be worth your time getting in touch with me on email@example.com in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
I have never had an issue beating the rates of exchange on offer elsewhere, and these current exchange rates can be fixed in place for anyone wanting to prebook their currency transfer later in the year at current exchange rates.