Sterling Euro exchange rates have hit their best level to sell Euros to buy Sterling which is good news for those looking to repatriate funds back from France or Spain or any other Eurozone country for that matter. However, for anyone looking to send money abroad this is not good news.
The Pound fell to its lowest since early January against the Euro at the end of Friday’s trading session as investors continued to digest the news that the European Central Bank may be looking at reducing their current QE programme of EUR80bn per month to just EUR60bn.
It highlights that the ECB are more bullish about the economy and they are confident that the plan so far has been working.
The suggestion is that the tapering will begin in early 2018 and once that happens it will be just a matter of time before they are able to increase interest rates again.
The game of political ping pong between the House of Lords and the House of Commons have caused problems for the Pound with the Lords looking to challenge the current Brexit bill.
The delay has caused Sterling to lose against all major currencies in particular against the Euro as highlighted with Friday’s big losses against the single currency.
To me personally I think we’ll see further losses in the run up to and immediately following the trigger of Article 50.
With the Brexit vote last year showing what can happen to exchange rates as a precedent has been set we could be in for a very serious period of volatility so if you’ve got a currency transfer to make in the next few weeks it may be worth buying a forward contract which allow you to fix an exchange rate for a future date for a small deposit.
Even with the Dutch elections due on Wednesday I think we’ll see a bit of volatility mid-week but I think the impact on GBPEUR exchange rates will be rather limited and the focus will remain on the Article 50 issue.
If you would like further information about buying or selling Euros or another currency pair that I haven’t covered then contact me directly.
Having spent the last 14 years working for one of the UK’s leading currency brokers I’m confident not only of saving you money compared to using your own bank but also help you with the timing of your transfer.
Tom Holian firstname.lastname@example.org