If you’re in the process of looking to convert Pounds into Euros or exchanging Euros into Sterling then tomorrow’s Italian referendum on constitutional reform is likely to set the tone for the currency pair for next week.
Prime Minister Matteo Renzi is looking to centralise the banking sector which is struggling with huge debt and in its current state is difficult to change. He has however said that he may look to resign if the vote doesn’t go his way and at the moment polls are showing that the vote is likely to be very close.
If he does end up resigning then the political uncertainty caused by who will take his place is likely to have a negative effect on the Euro and this could be the catalyst needed to send GBPEUR rates upwards towards 1.20 and perhaps even breaking through this level. Therefore, if you’re looking to buy Euros in the short term then this could be the good news that you’ve been waiting for.
The European Central Bank will also be meeting on Thursday to discuss their latest interest rate decision. Although I don’t expect any change to interest rates if ECB president Mario Draghi suggests that further Quantitative Easing may be needed in order to combat falling inflation then this could also help push Sterling up vs the single currency.
However, the UK is still struggling with the Article 50 and until we have some form of resolution then we are likely to see GBPEUR rates remain volatile.
Having worked in the currency markets since 2003 I am confident that with my experience I can help you with the timing of your transfer as well as save you money when buying or selling Euros compared to using your own bank.
For a free quote please email me directly with details about the volume you’re looking to convert and the timescale involved and I look forward to hearing from you.
Sterling exchange rates have seen a volatile day against most currencies with mixed market movements throughout the day. GBP EUR has fallen by 0.55% moving lower from the high of 1.18 touched this morning. GBP USD also maintains the higher ground with levels for this pair just below 1.25. The pound has fallen after comments from the Maltese Prime Minister Joseph Muscat made clear that EU leaders were not bluffing when they state that Britain must not receive a good deal when leaving the EU.
The negative tone suggests that Britain will not get an easy ride which is why the pound has reacted slightly negatively although this rhetoric is becoming very common place.
UK GDP data today has come out as expected at 0.5% for the third quarter which should be taken as positive for the British economy although politics have been the driving force. Mortgage approvals are released on Monday and may give some more clues as to how well the British economy is performing.
Purchasing Managers Index data for the services, manufacturing and construction sectors are also released next week and these can have an impact on the price of sterling. In the Eurozone Mario Draghi will be speaking on Monday and he may give a nod to additional quantitative Easing which would be negative for the Euro.
Clients who are holding sterling are seeing some much better times for buying Euros. We do appear to have now hit the peak for GBP EUR just over 1.18 this morning before coming back down sharply.
If you have an upcoming currency requirement either buying or selling Euros and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com