GBPEUR breaks 1.15 – is now the time to buy euros?

Over the last 12 months I can count on one hand the amount of times GBPEUR mid market champagne rates have broken through 1.15. No surprises Brexit uncertainties and the slowing UK economy forces investors to sell off the pound due to the improvement in its value and exchange rates fall back towards the lower teens.

The reason for the recent surge in sterling’s value is because of the optimism that the UK will secure a deal with the EU or at least extend Article50 and avoid a crash out on March29th. However, even though decisions have to be made in the next 30 days this feels like a deja vu moment.

The reality is the Prime Minister has to renegotiate the backstop as it will not pass in its current form at the end of the month.  If it’s the case she loses the meaningful vote at the end of the month then the current 1.15 level I expect will fall. Therefore for clients that are buying euros short term buying now seems the best strategy.

If you are in the market for buying euros, I would strongly recommend emailing me with the figures you are looking to purchase and I will respond with live figures. This will take 2 minutes and could end up saving you a considerable amount of money.

Longer term the question is will Theresa May secure a deal. Personally I think she will, however I don’t believe this will happen until the end of the summer as an extension of Article50 looks the most likely outcome over the next 6 weeks. Therefore if you are buying euros and holding off expecting the pound to break multi year highs the likelihood is that you are going to be disappointing as I don’t believe Brexit will help you and recent economic data has declined which shows Brexit is weighing down the UK economy.

For more information in regards to how Brexit could impact your currency exchange or for live prices email me directly [email protected].