Sterling rally’s after Boris meets Merkel

23 August, 2019

Ashley Finill

This week there has been some respite for Sterling as we have seen the GBP/EUR rate climb to it’s highest point in just over 2 months. This came after Boris Johnson met with the chancellor of Germany Angela Merkel to hold talks about what his plans are with Brexit. The meeting seemingly went well with Angela Merkel suggesting that an agreement can be reach regarding the Irish backstop. With that being said Sterling reacted in a bullish manor gaining nearly a cent and a half on both the Euro and the Dollar yesterday afternoon. This creates a great buying opportunity if you have buying requirements for both of the majors. With Brexit looming and more talks to be held over the next couple of months we may see a reversal should a deal not be reached with the EU, as we have seen in the recent past any talks of a no-deal Brexit the pounds tends to plummet and with no notice.

So with that being said it may be prudent to buy Euro’s or Dollars should you have the requirement to do so. To put it into monetary terms the spike in the gbp/eur rate would save you just over £1000 on your property purchase, not something to turn your head at. As we have seen previously these highs can be short lived when any suggestions of a no-deal Brexit are reported on. Boris Johnson is due to attend the G7 meeting at the weekend, this could present an opportunity to discuss anything Brexit. With the uncertainty rife there is no reason that we could see a downturn in the rates. With the markets having an extended closure due to the bank holiday weekend it may be worth giving us a call today so your are not caught out by any nasty surprises and you can take advantage of the best buying rates in 2 months and enjoy the bank holiday sunshine worry free and having no exposure to the highly volatile unforgiving currency market.