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GBP/EUR continues to remain range bound

Arron Morris Currency Broker - GBP/EUR continues to remain range bound Written by
Arron Morris
Senior Currency Broker
T: 01442 892 065

Last week saw the GBP/EUR exchange rate continue its trend of sitting within a cent range, with the currency pair bouncing between €1.17 and €1.18.

In fact, except for a brief dip on 5th April, the pound has been sitting at its current level against the euro since the end of March.

After months of heightened volatility, the past three weeks have produced some of most subdued market conditions we have seen for some time. However, this could easily be the calm before the storm and normal service could soon be resumed.

GBP/EUR exchange rate graph

GBP/EUR exchange rate graph

Why has the GBP/EUR exchange rate been flat?

Theresa May triggering Article 50 at the end of last month has cleared some of the uncertainty over Brexit, and seems to have finally provided investors with some clarity.

Negotiators for the European Union were also quick to state that the formal talks would not start until the end of April. This has provided the pound with some much needed breathing space, and with the UK economy still performing far better than many had predicted, it has allowed the GBP/EUR cross to find some stability.

Should I buy my euros now?

The current trading level is one of the best we have seen since the referendum result in June, and with the pound gaining over four cents against the euro in the past month, it certainly represents an excellent opportunity for anyone looking to purchase the single currency.

With the Brexit negotiations due to start in a matter of weeks, the pound is likely to come under pressure and the GBP/EUR rate could quickly slip back to the €1.13-€1.14 level we witnessed back in March.

It is also worth considering the impact the French elections could have on exchange rates. It seems Marine Le Pen will get through the first round, but then fall short once it becomes a two horse race. If that is the case, the likely scenario is that the euro will then strengthen which will then force the GBP/EUR cross down.

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We have a range of tools at our disposal, all designed to protect you against adverse market movements and help you budget efficiently. For more information about the range of tools available or to find out what rate of exchange we can offer, click the link below or call us directly on 0044 (0) 1442 892 065.

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Today’s data

There is very little in terms of data that could impact the pound or euro today, with no releases coming from the UK or Eurozone. Although the latest building permit numbers from the US this afternoon could cause some movement if there is any major deviation from the expected figure.

Arron Morris
Senior Currency Broker
T: 01442 892 065

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