Pound to Euro exchange rates hit the ground running to begin April
PUBLISHED: 12:11 07 April 2017 | UPDATED: 12:22 07 April 2017
Now Article 50 has been triggered and Brexit negotiations can begin it is crucial to keep up-to-date with exchange rates as a sudden change in rates can cost you thousands on a property purchase
Article 50 has finally been triggered after half a year of anticipation, and the net result for prospective French property buyers has been positive, both from a currency and a social perspective.
Article 50 and the beginning of the Brexit negotiations
The Pound was fairly shaky heading into the official launch of the Brexit negotiations, with Sterling to Euro rates falling back into the low 1.14s on Tuesday 28th March. However, there was a positive tone in the House of Commons with Theresa May introducing the bill, alongside a further boost from the encouraging murmurs from the European side of the negotiations.
Frankly the European side is what markets care about the most, since the UK can be positive all it likes but it needs a reciprocal partner in the Eurozone mirroring this in order to get anything done.
Donald Tusk, the President of the European Council, was very accommodating in his response to a letter received from Theresa May detailing the UK’s wish to leave. He wished to point out that if a favourable deal is not reached in two years, then Article 50 could be withdrawn, and also pointed out that trade negotiations could begin before the UK has officially disentangled itself from the EU.
All the above increases the probability that the UK will achieve a fair result and in a timely fashion.
Furthermore, the fact that both sides will be seeking to guarantee the rights of their citizens in each country will be comforting to many already over in France, and to prospective French property buyers.
How best to approach your Euro purchase moving forward
Now that the beginning of Article 50 has come and gone, the next focus for currency markets will be the French election, followed by the first official EU council meeting concerning the formal Brexit negotiations on 29th April – so Brexit certainly will not be fading into the background anytime soon.
Polls will continue to be released in the run-up to the French elections, with the Euro’s value changing in line with how positively or negative markets receive the potential for a Marine Le Pen or Macron win.
Whilst Brexit will not be governing markets day to day as it once did, politics is still the governing factor. As such unlike economics, contradictory news can emerge quickly and without warning, suddenly changing trends in an instant, either adding expense to your property purchase or making it a cheaper prospect. The role of a currency broker is to keep you informed of any favourable currency movement so that opportunities are not missed, or that concerning trends are dealt with quickly. With the difference of over a cent on Pound to Euro exchange rates between the high and the low each day at the moment, a well-timed transfer even within 24 hours will make a 4-figure difference on the cost of €100,000 each day.
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