With Article 50 now due to take place next month the Pound has made some small gains vs the Euro recently as the government appears to have taken more control of the situation.
The uncertainty over the last few weeks has really caused problems for the Pound but with the government now edging closer to the negotiations this has helped Sterling.
There are clearly issues that will cause problems for the Pound and the uncertainty of what will happen going forward are likely to affect the value of Sterling Euro exchange rates but longer term the issue is likely to focus on the European political situation.
As well as Article 50 next month we also see the Dutch going to the polls. There is a real voice for change in the Netherlands with the term ‘Nexit’ on the agenda for many voters.
The French also begin the polling in April with the final vote due in May and with such unrest in both countries I think longer term we could see the Pound make some real gains against the Euro.
Coming soon a Eurogroup meeting will take place to discuss the Greek debt issue and as yet there has been no resolution or end in sight of the Greeks being able to pay off their debt.
The talks are likely to not go too well in my opinion and this could result in some problems for the single currency.
In summary in short term I think the Pound will struggle to make gains vs the Euro but once the elections start to take place on the continent I think we could see GBPEUR rates break past 1.20.
However, as with the Brexit vote we could see some big movements once Article 50 is triggered so if you’re concerned about what may happen to the vale of Pound to Euro rates in the weeks ahead it may be worth buying a forward contract which allows you to fix an exchange rate for a future date.
To find out more or for a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com