Better than expected data from Germany today has done nothing to halt the steady rise in GBP/EUR rates, which hit a fresh high of €1.32 today. This is the highest it’s been since early February. The continued gain is due to further signs that the UK will vote to remain within the EU. Betting odds today indicate that there is now an 82% chance we’ll remain part of the EU. This has removed much of the uncertainty in the market that a possible Brexit would cause. As such, the Pound is strengthening as a ‘remain’ vote gets priced into the market. Here’s this weeks GBP/EUR graph showing the rising exchange rate:
As I pointed out early this week though, the demographics mean there’s no certainty the result will be remain on polling day. If the younger generation, who clearly favour remaining in the EU, don’t go and vote, then the older generation, who favour a ‘brexit’ could well end up swinging the result significantly, as voter turnout is much higher in this age group.
Regardless which way it may move in the coming weeks, the current level is the best in many months, and given the rate is now hitting resistance at €1.32, it’s certainly worth considering fixing a rate on a portion of any Euros you may need to buy, to reduce your exposure.
If you need to buy Euros in the next few months, get in touch for more information about how we can help you, and get a quote to see how much you could save by using our services.
Pound/Dollar gains limited by USD strength
GBP/USD rates have also risen this week, but not by as much as Sterling/Euro. The reason for this is that the Dollar is very strong, due to predictions that the Federal Reserve are going to raise interest rates next month. The potential higher return has made the USD more attractive, and more expensive to buy, hence why this pair has only risen by 1% this week. Half that of GBP/EUR.
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If you’re reading this, you likely have a keen interest in what’s happening to exchange rates, and therefore you probably want to ensure you achieve the best possible exchange rates. Click below to send me a free no obligation enquiry, and I can get in touch personally to discuss your requirements, explain your options, and let you know what rate of exchange you can achieve so you can see how much you could save.