Pound to Euro exchange rate: Sterling remains in the 1.13s against the Euro
The pound to euro exchange rate reached fresh highs last week, nudging some of the best rates since May at 1.1371 on the interbank rate compared to when GBP/EUR interbank rates slumped to 1.0647 in early August. The sudden rise has provided some welcome relief for clients buying euros with pounds who had struggled when faced with the sudden decline in August, as the market prepared for a no-deal Brexit. Since then, fresh optimism that Boris Johnson can strike a deal, coupled with weakness in the Eurozone economy, has triggered a shift for sterling against the single currency.
Brexit Supreme Court hearing: Could it cause volatility for GBP/EUR exchange rates?
This week could be of importance as we may learn of the latest news from the Supreme Court, which will be ruling on the legality of the proroguing of parliament by the British Government. Expectations are mixed on the outcome but with Brexit developments being quite closely linked to the performance of the pound, we may see some volatility and movement on sterling exchange rates.
Currency markets awaiting news on Brexit
Looking ahead, the final outcome on Brexit is eagerly awaited by both the general public and the currency markets. Trying to anticipate where this will head is far from easy but as a general rule of thumb, signs of an extension or a deal with the EU have seen the pound to euro exchange rate strengthen as it provides certainty and ensures no-deal is avoided. Whilst signs of no-deal have seen the pound weaker versus the euro, as it indicates economic uncertainty ahead for business.
The relationship between the UK and its largest trading partner is undergoing some fundamental change, and this has been a vital factor on GBP/EUR exchange rates. If you are looking to make a transfer of euros to pounds or pounds to euros, understanding what is driving the market and the latest events ahead can be helpful and reassuring. For more information on factors influencing pound to euro rates or if you have an upcoming currency transfer and would like to save money when compared to using your bank, please contact our team to learn more.