During the course of the week Sterling has been rising against the Euro and steadily against the US Dollar which has seen GBPEUR rates hit their best exchange rate in weeks.
The Brexit issue has continued to dominate exchange rates recently but with one of the Bank of England policy members claiming that the Brexit has not had the negative impact that was predicted this has helped the Pound to make gains vs all major currencies.
The government appears to have now got the power to trigger Article 50 but the final agreement will still need to be agreed before the negotiations will be allowed to take place.
Over the next few weeks the Pound is likely to be affected by the discussions and in my opinion it is unlikely that we’ll see any real significant gains for the Pound against either the Euro or the US Dollar.
However, as the government gets closer to getting its own way this could support the Pound as it provides the certainty going forward.
UK manufacturing and industrial production figures as well as GDP for the UK came out positively yesterday which helped support the Pound and the reason for such improvement is likely down to the Pound’s weakness recently and the realisation that the Brexit vote hasn’t caused the problems that some predicted.
If we look longer in to the future as the elections begin in Netherlands and France in March and April respectively I think we could see some problems ahead for the single currency as both countries are likely to demonstrate some political uncertainty during this period.
Indeed, there is a real voice for change in Netherlands so if they look at voting for a party in favour of a ‘Nexit’ this could see Euro weakness as it suggests further problems ahead for the Eurozone.
In summary I think long term we’ll see the Pound go up against the Euro but prior to Article 50 I think the Pound will remain under pressure.
If you are looking to buy or sell Euros and would like further information or for a free quote then contact me directly and I look forward to hearing from you. Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to offer you bank beating exchange rates as well as helping with the timing of your transfer.
Tom Holian firstname.lastname@example.org