Pound/euro forecast: The pound spiked last night to its highest level since May 2017. Worth buying now?

Last night, MPs rejected the UK leaving the EU without a deal by 321 to 278 votes, and MPs will vote later today on whether to request a delay to Article 50, and leaving the EU later than the 29th March.

The GBP/EUR exchange rate reacted positively on this news and saw the exchange rate spike to its highest levels since May 2017.

Theresa May could make a third attempt to get her deal through Parliament in the next few days. However, a ‘no deal’ Brexit is still the default outcome. So, if the EU do not agree to an extension of Article 50, and MP’s don’t agree to the current deal on the table, then the risk of a Brexit ‘no deal’ remains.

German Consumer Price Index (CPI) data this morning came in slightly weaker than expected at 0.4% against a 0.5% forecast, and French CPI data came in slightly better at 0.1% against a 0% forecast. This held the euro steady, and is likely to continue to hold steady if Eurozone CPI data tomorrow comes in as forecast at 1.5%.

Buy euros now or take a gamble that the pound will continue to rise?

There is still uncertainty surrounding the GBP/EUR exchange rate and ultimately which direction it will take. With this in mind, if you are buying euros, it could be prudent to consider your upcoming transfers given the fact that exchange rates are at better levels that we have seen over the past 2 years.

If you would like to discuss your upcoming currency requirements, feel free to get in touch with me by email here. I’ll be happy to get in touch personally and discuss your enquiry.