Impact of Brexit deadline on GBP/EUR exchange rate?
How did the UK’s decision to extend its Brexit deadline impact the GBP/EUR exchange rate? And what should I be looking out for in the months ahead if I want to make the most of my currency transfers? F.B.
When Theresa May announced that the Brexit deadline was being extended until the end of October, following on from a shorter delay to the original March exit date, the GBP/EUR exchange rate surged.
Markets were relieved as the risk of the UK crashing out of the EU without a deal immediately receded.
However, this initial positive reaction was soon tempered as investors processed the prospect of the UK facing another six months of Brexit-based uncertainty.
As a result, the GBP/EUR exchange rate failed to best the 22-month high it had reached in early March as investors opted for a warier approach.
Recent talks between the Labour and Conservative leaderships have helped to shore up the GBP/EUR exchange rate, though, as markets continue to hope for a fresh breakthrough.
If progress towards an agreement still proves elusive in the weeks ahead, however, the GBP/EUR exchange rate looks at risk of weakening further as the odds of a no-deal Brexit rise once again.
For anyone looking to maximise the value of their currency transfers, the next few months appear fraught. As political and market developments can unfold quickly, it is essential to stay up to date with the latest news to benefit from the best exchange rates.
By opening an account with a leading currency transfer provider, you can stay on top of all the latest exchange rate movements and take advantage of transfer options.
For example, in times of currency volatility one of the greatest tools at your disposal is a forward contract, which allows you to lock in the rate for a small deposit.
This way even if the GBP/EUR exchange rate falls between that moment and the time of your transfer you would still trade at the better exchange rate.
Question answered by Shaun Dash of Currencies Direct. For more information on international money transfers with Currencies Direct see www.currenciesdirect.com/france or call +33 (0)4 22 32 62 40
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