As Brexit has been extended and the Pound has dropped away, the question many of our clients are asking is when to convert Pounds to Euros? This week as expected, the UK and EU agreed to push back the Brexit date until 31st October. While removing the threat of the UK crashing out with no Deal today, extending Article 50 has also simply extended the uncertainty for business’s, investors and consumers, and the Pound has weakened as a result.
The political and economic uncertainty is now going to drag on for another 6 months. Donald Tusk advised MP’s not to waste the extra time they have been given. MP’s then cheered as Commons leader Andrea Leadsom re-instated their 2 week Easter holiday so nothing will be done until next month.
What next for Brexit and the Pound?
Who knows what this extension means and how it could impact the Pound in the coming months. There might be a new Conservative leader that would be Eurosceptic eg. Boris Johnson. The Bank of England will likely hold off any interest rate rises while they wait to see what happens. In realilty nothing much has changed. Parliament is still divided, the Government is still divided, there is still no majority for any kind of deal, and the extension has simply kicked the can down the road.
Will the Pound rise or fall in the coming months?
For these reasons above, we can’t see where any gains for Sterling are likely to come from. Uncertainty remains and with no resolution to the Brexit issue likely until the Autumn, it’s likely the Pound will either stay flat or fall against other currencies.
When to convert Pounds to Euros?
Many of our clients have been waiting to see what will happen, as any agreed deal would have likely strengthend the Pound against the Euro and other currencies. With no deal likely until after the summer, there is now little point in waiting. Those that need to convert Pounds to Euros in the next 6 months should get in touch today to discuss the options with a currency expert.
There are various ways you can protect against adverse rate movements, including Forward Contracts, Stop Loss orders, and Limit Orders. We offer exceptional rates of exhcange, and an online trading account so you can see the rates we offer 24/7. By comparing our rates with your bank or existing broker, you can see how much you could save by taking advantage of our competitive rates. For large transfers we usually save our clients thousands of Pounds.