Things can change very quickly in the currency markets. Just last week the GBP/EUR rate was at a 3 month high of €1.32, supported by opinion polls suggesting that the UK would vote to remain within the EU. However we have now seen the rate drop, as the latest polls published today paint a very different picture. Here's how GBP/EUR has moved today:
As you can see the rate has dropped, and the decline started as soon as the trading started at 8am. The Pound fell as a poll published in the telegraph showed the lead for the 'remain' campaign had narrowed. Month end flows also caused Sterling to drop away slightly. Then at 3.30pm a poll by ICM in the guardian showed that 45% would vote to leave, and 42% vote to stay. This shows how polls can change very quickly, and the Pound will change in value along with it. There are now 3 weeks to go and clearly, the vote could go either way.
This presents a serious risk for anyone needing to convert currency. Whether you're buying or selling property abroad, or a business that buys or sells goods overseas, simply hoping that the rate will move favourably could cost you thousands of Pounds.
With GBP/EUR rates and indeed all Sterling pairs now being driven by opinion polls, the coming weeks will be key for those looking to achieve the best exchange rates. If you want to compare our rates of exchange with your bank or existing broker, have a chat about how the 'Brexit' vote could affect your transfer, or simply discuss how we can protect you against a sudden drop in the rate, then click here to send me a free enquiry.