With just weeks before the first set of European elections take place GBPEUR rates are currently being influenced by what is happening with the Article 50 discussions.
However, next month the Dutch go to the polls to vote for their next leader. With Brexit and Trump during 2016 could we see further voices for change on the continent during this year?
There is clearly a voice of discontentment at the moment and with the French campaign due to start in April we could see further change ahead. Fillon has already been accused of various misdemeanours and with the UK looking to trigger Article 50 by March we could see a very different European political landscape by the summer.
Currency is heavily influenced by both economic and political uncertainty and with things likely to change in Europe I think longer term we could see GBPEUR rates make some real gains but in the short term until we get past the issue of what will happen once Article 50 is triggered Sterling is likely to remain under pressure.
This week we have seen two data releases which have caused Sterling to fall from its recent 6 week highs against the Euro. On Wednesday UK Average Earnings showed a fall and Sterling’s woes were added to by Friday Retail Sales data for January.
Retail Sales came out much worse than expected and this caused big losses for Sterling vs the single currency. As the UK is such a service driven economy this data has caused real concern for the Pound hence this week’s fall against the Euro.
Wednesday is likely to be the next big day for GBPEUR rates in the short term with the release of fourth quarter GDP data for the UK so if you have a currency transfer to make this week watch out for the release.
If you have a currency transfer to make and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
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Tom Holian email@example.com