Best Pound to Euro rates for 2 months

Sterling crept up slowly against the Euro yesterday and we saw the best Euro buying levels since November after Theresa May’s government survived a vote of no confidence in the Commons.

Despite the catastrophic defeat of her Brexit deal on Tuesday, Mrs May enjoyed the support of all Conservative and DUP MPs, enabling her to fight on by offering an olive branch to other party leaders as our elected representatives try to come together to solve the Brexit conundrum.

The cautiously optimistic performance of the Pound since the vote on Tuesday has been a welcome surprise for UK buyers of property abroad; most City analysts and commentators had expected sterling to fall significantly under the circumstances. Perhaps the decreasing likelihood of a ‘no deal’ Brexit and the possibility of some kind of customs union or an extension of Article 50, all of which are good news for business stability and confidence, are the reasons.

What is clear is that sterling’s fortunes still rely heavily on what finally comes out of this most painfully slow of political processes. There is still a risk of a disorderly Brexit in 71 days which would almost certainly send sterling plummeting, or a general election which would probably do the same. So many clients needing to send Euros abroad, or indeed any other currencies, have been taking advantage of the unexpected improvement this week and locking in their rates as some insurance against the risk of further problems ahead.

Inflation Helps Exchange Rates

As well as the Brexit headlines, a reminder that economic figures continue to be released and will have an effect on exchange rates. This month’s main UK inflation figures were released at 9.30am yesterday, with a slight rise in inflation helping the Pound’s performance, and the equivalent Eurozone figures are announced at 10am today. We then have UK retail sales tomorrow morning which could be a problem for the Pound if Christmas shoppers tightened their belts due to Brexit worries.

As always whatever your currency transfer requirements, give us a call at Currency Index and let us help you decide the timing for your exchange – don’t forget we can offer fixed exchange rates up to 2 years ahead, to fix and guarantee your costs and remove risk from your currency transactions.