If you are a regular reader many of the article written within the last 12 months have been Brexit focused, and this article is no different as I believe the triggering of Article50 within the next 2 months has the potential to shift exchange rates by 5-8%.
To summarise Brexit, the House of Commons have given the UK Prime Minister Theresa May approval to trigger Article50 of the Lisbon Treaty and we are now awaiting the decision from the House of Lords. If the House of Lords approve within the upcoming days, Parliament will approval that Government has the right to trigger Article50 and therefore Theresa May’s March deadline looks likely.
To make it clear this does not mean the UK will exit the EU at the end of March, it means the UK and EU will begin negotiations and an exit will occur within 2 years.
As for exchange rates, the days before and on the day Theresa May triggers Article50 I believe the pound will plummet in value meaning purchasing euros will become more expensive. For people that have only followed pound vs euro exchange rates since the start of the year pound vs euro rates were fluctuating between 1.10-1.12 in October2016. If you are needing to purchase euro for a property purchase or paying a company invoice within the next 3 months the safe option would be to buy your euros upfront. For more information is rega
Looking further ahead the French Election has the potential to improve rates for euro buyers. Republican Francois Fillon (Pro EU) was in the driving seat and expected to twin the Election. However in recent weeks he has been under severe pressure as it has been reported that he has paid his wife €1,000,000 over the last 12 months for work she has not done.
This has paved a way for anti EU Marine Le Pen. The far right leader has made it clear she wants France out of the euro as soon as possible and its no surprise this is being labelled as ‘Frexit’. Even though Mr Fillion is under pressure the consensus is that he will pull through. However it’s important to note the consensus was also for the UK to remain part of the EU and Hilary Clinton to become President of the US.
Regardless of the outcome the election will make investors within Europe nervous, and therefore I expect purchasing euros to become cheaper throughout quarter two of 2017. If you are selling euros within the upcoming months the best time could be when the UK trigger Article50. I would recommend outlining your position to me via email, and I will watch the market for you and keep you up to date with market information.
How to save money
When buying or selling euros it’s important to understand factors influencing pound v euro exchange rates but its also important that you receive the best possible rate. The brokerage I work for has been trading for 17 years. simply because we offer better rates than banks which means the clients saves money. I would recommend emailing me with your requirements and I will respond with the process of using our company and options available to you. My direct email is firstname.lastname@example.org.