Are you keeping an eye on the EUR to GBP rate? It looks like we’re on the brink of a fresh fall, so it’s definitely worth paying attention to. According to analysts, there are a few key factors driving this potential fall.
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Factors Affecting the Exchange Rate
The first factor is Brexit. As you’re probably aware, the ongoing negotiations around Brexit have been causing a lot of uncertainty in the market. This uncertainty has led to a general sense of caution among investors, which in turn has put pressure on the pound.
The second factor is the relative strength of the euro. The euro has been performing well against other currencies recently, including the pound. This is due in part to the economic recovery in Europe, as well as the policies of the European Central Bank.
Finally, there’s the issue of political instability in the UK. With a minority government in power and ongoing Brexit negotiations, there’s a lot of uncertainty about the political future of the country. This uncertainty can have a direct impact on the value of the pound.
How to Get the Best Exchange Rate
Now that we’ve covered why the exchange rate is likely to fall, let’s talk about how to get the best rate possible. Here are a few tips:
Shop Around
The first tip is to shop around. Don’t just use your bank or exchange bureau – look for the best rates online or at other exchange bureaus. You might be able to save a significant amount of money by doing so.
Be Flexible
If you’re not in a rush to exchange your currency, you might be able to get a better rate by being a bit more flexible. For example, if you’re exchanging pounds for euros, you might want to wait until the exchange rate is more favourable before making the exchange.
Avoid Airport Exchange Bureaus
Exchange bureaus at airports are notoriously expensive. If you can, avoid using them altogether. If you absolutely have to use an airport bureau, make sure you’re aware of the fees they charge and the exchange rate they’re giving you.
Euro to Pound Exchange Rate Could Soar in 2017
Despite the potential for a fall in the exchange rate, some analysts are predicting that the euro to pound rate could actually soar in 2017. According to some experts, there are a few reasons why this might happen.
Brexit Negotiations
The ongoing negotiations around Brexit could actually have the effect of strengthening the euro. If, for example, the negotiations go poorly or if the UK crashes out of the EU without a deal, the euro could become a more attractive option for investors.
Economic Growth in the Eurozone
The eurozone has been experiencing economic growth recently, which could help to strengthen the euro in the coming months. This growth has been led by countries like Germany and France, which are among the largest economies in the world.
Pound Sterling in Shock Jump against Euro and Dollar at Start of New Week
In some positive news for the pound, it recently experienced a shock jump against both the euro and the dollar. The jump came after it was revealed that UK wage growth was the fastest it had been in almost a decade.
This news was seen as a positive sign for the UK economy, and it helped to boost investor confidence in the pound. Of course, it’s important to remember that the exchange rate can be quite volatile, so we’ll have to wait and see if this trend continues.
Final Thoughts
There’s no doubt that the exchange rate between the pound and the euro is facing a period of uncertainty. With Brexit negotiations ongoing and political instability in the UK, it can be difficult to predict what will happen next.
That being said, there are steps you can take to get the best exchange rate possible. By shopping around, being flexible, and avoiding airport bureaus, you can save yourself some money on your currency exchanges.
As always, it’s worth keeping an eye on the news and staying informed about any new developments that could impact the exchange rate. With a bit of research and some patience, you should be able to navigate the current climate and get a good deal on your currency exchanges.
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