Where next for Euro exchange rates?

The Euro to pound exchange rate is looking closer to some of the better rates for clients looking to buy pounds with Euros as the pound stumble on Brexit progress. This possibility was very much warned about to our readers, that sterling could easily come unstuck and find itself struggling against the Euro once again. Euro buyers with pounds must tread with caution in the current market as we expect further twists and turns in the sentiment on Brexit.

Overall the outlook is slightly more positive for the pound and the Brexit but this latest twist has given us fresh concern over what the ultimate result will be. The concern has arisen as the UK threatens to withhold payments on the final Brexit bill they will be paying over concerns the EU will force North Ireland to remain subject to EU rules.

The expectation is the pound will make back some of the ground if we see progress on the Brexit once again but it will surely continue to be a topsy-turvy journey. The next big news we receive will be the Theresa May speech tomorrow and then the Italian election over the weekend. Sunday is important not just for the date of the Italian election but also because it is the final date for the SPD (Social Democratic Party) to vote on partnership with Angela Merkel’s CDU (Christian Democratic Union) party.

If you are buying Euros or selling them the rates remain very volatile at present, expectations are for them to remain within the recent ranges we have occupied but both Theresa May’s speech and the political events in Germany and Italy could be market movers.

For more information at no cost or oblgation please speak to me Jonathan Watson by emailing [email protected].

Thank you for reading and I look forward to hearing from you.