GBPEUR exchange rates are now at the lowest level that we have seen so far this year. As many of you may know, the GBPEUR rate has been on a downward trend since we hit 1.15 and hasn’t found a low to bounce back from yet.
The latest reason for Sterling weakness has been the talk of a “No Deal Brexit” over the last couple of weeks- which has sent the Pound spiraling down against the Euro- and still below 1.30 against the U.S Dollar.
The UK Government have also set out 24 out of 80 plans for the UK if we were to hit a no deal scenario- which means that this is something that is being heavily considered and prepared for- but at the same time, Dominic Raab and Michel Barnier have agreed to extend talks until a deal is reached- which in my opinion is positive, but so far is not reflecting in the exchange rates. The only thing to be aware of is there are still more papers to be released in the meantime, which could continue to deliver blows to the Pound.
My view is that when a deal is reached, the Pound will bounce back and strengthen, but right now through this uncertainty, GBPEUR rates are positive for those of you selling Euros to purchase Sterling- but not a great place for those of you looking to purchase Euros.
Unfortunately, this week is pretty quiet as far as data is concerned, so the markets will be moving on Brexit news, so if you have an upcoming transaction and would like to explore hedging strategies such as forward contracts and market orders- please don’t hesitate to contact me directly.