Pound to Euro Forecast: Will the Pound improve against the Euro?

Brexit talks continue to weigh heavily on Pound to Euro exchange rates

Over the last few days the Pound has felt a lot of pressure owing to what is happening politically at the moment in the UK. Rumours are circulating that a leadership challenge may be coming with a number of MPs potentially writing a letter to Sir Graham Brady who is the Chairman of the Backbench 1922 Committee. Some have suggested that the number is as high as 50 with at least 48 needed to begin the challenge.

What does the politic uncertainty mean for the Pound to Euro forecast

Prime Minister Theresa May has dismissed this issue and has claimed that by getting rid of her this will not help the Brexit talks. Theresa May has been campaigning over the last few days in support of her proposed deal and insists that she is the best person for the job.

Meanwhile, a number of senior ministers have come together to create a different plan being offered by May. The group includes Leadsom, Grayling, Fox, Mordaunt & Gove are they are planning to offer an alternative Brexit proposal. The main problem for the Pound is that political uncertainty will often result in Sterling weakness and this appears to be the case at the moment.

Italian issue keeps the Euro under pressure

Since late Friday afternoon the Pound has been able to fend off any further losses as the market also appears to be focused on what is happening in Italy at the moment.

The Italian Government has not backed down from the threats made by the European Union over its draft budget plans and this appears to have divided the bloc.

If the European Union is unable to assert its power over Italy this could give rise to other countries doing the same so it is a dangerous precedent that is clearly wants to avoid.

Talks between Europe and Italy are due to take place tomorrow and this could start to influence Pound to Euro exchange rates over the short term. Make sure you keep a close eye out on what happens between the two.

In the immediate future however I think the Pound will remain under pressure owing to the Brexit uncertainty so if you’re planning to buy Euros it may be worth getting this organised very soon.

If you have any questions about Pound to Euro rates or would like to discuss a currency transfer in more detail please send me a message using the form below:

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