GBP/EUR reaches a 6 month high to then fall away heavily in the afternoon session

Those of you that were in a position to act swiftly managed to catch sterling at its highest level against the single currency in nearly 6 months this morning. For the first time since June the pound pushed over 1.15 but these levels were not to last. In fact by the close the pound had fallen by over 1% to reach 1.1360.

Initial signs were  good this morning following news that Theresa May had struck a last minute deal with the EU in a bid to move Brexit talks onto the next phase. There will be no “hard border” with Ireland, and the rights of the EU citizens in the UK and UK citizens in the EU will be protected. Its so called “divorce bill” will amount to between £35 and £39bn – less than the £50bn as speculated a week or so back but still enough to push the pound through 1.15.

As mentioned, however, these gains did not last and anyone hoping for a push towards 1.16 will have been mightily disappointed. For me this see-saw effect is a trend that will continue and for this reason should you have a future transfer to arrange it is key to get yourself in the best position to take advantage of a spike. By utilising the services of a specialist foreign exchange broker we can be your eyes and ears on the market to help you with the timing of your international money transfer.

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