There are a number of factors why the Pound to Euro exchange rate is now trading at a 2 month low to buy Euros.
Sterling has come under pressure recently and will likely to continue its demise as Article 50 dominates the headlines.
At the moment the House of Lords have challenged the recent Brexit bill and each time an obstacle is put in front of the UK government the Pound appears to suffer against the single currency.
With an expectation that Article 50 will be triggered this month we are still yet to get any formal clarification as to when it will actually happen and therefore this is why I think the Pound will continue to struggle against the Euro.
On Thursday the European Central Bank confirmed that they will be tapering their current QE programme and suggested that high inflation is simply short term caused by higher than normal energy prices and so they will look to cut the current amount from EUR80bn per month to EUR60bn and the likelihood is that this will happen by January next year.
Rumours have also surfaced late yesterday that the International Monetary Fund will look to bailout Greece and this has sent GBPEUR rates at the end of Friday’s trading session to their lowest level in 2 months.
During the middle of next week the Dutch elections take place with the far-Right leader Geert Wilders likely to win. However, the problem for him is that all the other parties involved have said they will not form a coalition with him but as we all know when there is an opportunity to share power history has told us with the Lib Dems a few years ago that people can change their mind.
Therefore, expect some volatility for GBPEUR exchange rates in the run up to the vote but overall my expectation is to see further losses for Sterling vs the single currency.
If you would like a free quote when buying or selling Euros or would like further information to help you make an informed decision as to when to buy your currency then contact me directly for a free quote and I look forward to hearing from you.
Tom Holian firstname.lastname@example.org