Sterling has risen over the course of the last few days, recovering the losses we saw last week. There are several reasons for the gains:
Why has the Pound gone up?
There are 3 main reasons that the Pound has risen:
- Rumours have circled today that the UK may be willing to make some compromises with regards to the Irish border to help secure a Brexit deal. This reduces the chance of a ‘No Deal’ and has pushed the Pound up by 0.5% today.
- GDP growth was confirmed at 0.4% last week, which means the UK has continues to show steady growth despite the uncertainty Brexit has caused.
- One of the Bank of England rate setters last week indicated that if the UK economy continues to grow at it’s current pace, then it could mean interest rates going up again sooner than markets had been expecting.
Those are the main reasons that the Pound has risen. GBP/EUR is now 2.5% higher than it was a month ago, which means a typical purchase of €300,000.00 is £6500.00 cheaper. It’s also worth noting that in recent months, we have seen rates get close to €1.13 only for the rate to drop back away again. Any negative comments about Brexit could easily wipe out these recent gains.
Getting the best Pound/Euro rate
Anyone that needs to buy Euros may with to consider taking advantage of the current levels. Even if you don’t need your currency right away, you can freeze the current rate for up to 2 years, by lodging a 10% deposit. To discuss our services in more detail, or to get a quick quote, get in touch today.