Supreme Court ruling – Pound rises
Good afternoon. Following this morning’s Supreme Court ruling that suspending parliament was unlawful, the Pound has strengthened. This morning the GBP/EUR rate was at €1.13, but has since risen by around 0.5% to €1.1350:
Will the Pound keep rising?
I don’t think so. It’s hard to know whether today’s events will have much more of an impact on the Pound. It’s certainly going to generate headlines, but the reality is that it hasn’t changed much. There will be calls for the PM to resign, and it provides ammunition to the opposition. An election is now certain. Boris has tried twice to call for one, however this has been blocked by opposition MPs.
Current polling shows the Conservatives would win a large majority. For this reason, Labour and other parties want an election after the 31st of October. This is so they can say the PM has failed in his pledge to deliver Brexit, in the hope that voters will desert the party and give them a bigger chance of winning. All of this was true yesterday, so not much has really changed. No Deal is now very unlikely which is why the Pound is a little higher. However, the continued uncertainty is, in my view, likely to limit any further gains for the Pound.
When to convert Pounds to Euros
If you need to convert Pounds to Euros, then it’s worth noting the current rate is 6.5% higher than a month ago. The chart below shows how the GBP/EUR rate has moved over the last 3 months.
In real terms, a €250,000.00 property purchase is £15,000.00 cheaper than last month, purely due to exchange rate movements. This really illustrates how important it is to ensure you get the best rate of exchange, and take steps to protect yourself against the rate moving against you. For those with an imminent currency transfer to make, it’s worth considering taking advantage of this recent spike in the value of Sterling.
We offer exceptional rates of exchange, coupled with tools to help clients avoid the market moving against them. For example, we can freeze the current rate for up to 2 years with a 10% deposit. We also offer free online trading, rate alerts, and free consultation with an expert currency broker to help you decide when to fix a rate.