Sterling Euro exchange rates have continued to tumble during the week with GBPEUR rates now at their lowest point to buy Euros since early November 2016.
The Pound has also fallen against all major currencies with big losses seen vs the US Dollar and the Australian Dollar.
The Pound has struggled as it appears, at least for the moment, that we could be facing a hard Brexit which means we may not necessarily remain in the single market which has sent shockwaves through the currency markets and therefore Sterling has fallen.
Personal debt per household has continued to rise and this means that with inflation also set to rise it may be difficult for the Bank of England to increase interest rates in the future as this could cause further problems and this has resulted in weakness for the Pound.
Indeed, Bank of England member Andy Haldane went on to say ‘interest rates are still very low, and are expected to remain so for the foreseeable future.’
On the continent the Eurozone’s leading economy Germany has announced strong economic data in the form of GDP which came out at 1.9% for 2016 which was better than expected.
As the Eurozone’s strongest economy this has led to the Euro strengthening against the Pound creating some excellent opportunities to sell Euros to buy Sterling.
Next week Prime Minister Theresa May is set to address the nation on Tuesday and hopefully we will have the announcement of the recent Supreme Court judgement coming soon.
However, MPs have been explicit in that they want Theresa May to clarify her position with regards the single market before any Brexit talks can begin.
With the continued uncertainty surrounding Brexit I feel there are further problems ahead for the Pound vs the Euro as well as other major currencies so if you need to send money abroad in the next few weeks it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.
Having worked in the currency markets since 2003 I am confident that not only can I offer you bank beating exchange rates but also able with my experience to help you with the timing of your transfer.
To find out more or if you’d like a free quote when buying or selling currency then feel free to contact me directly and I look forward to hearing from you.
Tom Holian teh@currencies.co.uk