Campaigning almost over, what next for sterling vs euro exchange rates (Dayle Littlejohn)

In recent articles that I have published yesterday evening and on Sunday, I have stated that a Conservative win should lead to sterling strength where as any other result could lead to the pounds demise. For people that have not got in touch so far and are regular readers I am guessing you have formulated a plan about the outcome of the election and therefore this article is going to look at factors that will influence exchange rates after the election.

On the 19th of June Brexit negotiations between the UK and Brussels will begin. UK Prime Minister Theresa May has announced that the Brexit divorce settlement is on the agenda however there is no reason why Brexit talks cannot run alongside. With the commentary coming from Brussels I find this difficult to believe. Brussels are suggesting a figure of €100bn where as the UK believe they wont have to pay a penny. As both parties are a million miles apart I believe this story could make headline news for the wrong reasons and therefore the pound could lose value.

If you are purchasing euros with pounds and have not got in touch as of yet, you must believe the Conservative party will win a majority and therefore the pound will rise in value. My personal opinion is that this will materialise however at that point when the pound has spiked against the euro, I believe you should take advantage and buy your currency. If you wish to save money on your currency conversion feel free to get in touch by emailing me on [email protected] and we can make a comparison against your current provider or bank.

In recent weeks President of the European Central bank has painted a picture that the eurozone economy is improving as a whole as unemployment numbers have fallen to their lowest levels and growth is steady. The most important question for the European Central Bank is when or will they taper the quantitative easing program which would therefore strengthen the euro?

With Mario Draghi given no hints so far I would be surprised if this happens within the next 3 months however I wouldn’t be surprised to see the President hint to a tapering of the program in the future which in turn would strengthen the euro.

All in all it looks like the future is looking brighter for the euro, however the US interest rate decision this month could have a negative impact on the euros value. It appears that the US will raise interest rates and consequently we could see a sell off of euros to buy US dollars as this is the most traded currency pair globally.

If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.

** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **