Last week was horrible for Sterling and current exchange rate for GBP/EUR droped to 1.10 according to XE.com. Moreover we can expect it going even below that level. As you remember the recent drop is associated with unfavourable reports from Super Thursday and inflation rate data. All this is shaking the confidence towards British currency and economy.
Meanwhile there are some signals coming from fundamental analysts that say GBP to EUR exchange rate will probably start slow recover in 3 months. However the year-end target among currency exchange analysts community is just 1.12 against EUR and 1.28 against USD.
Financial analyst Asmara Jamaleh expects some recovery as well as further high volatility of pounds Sterling rate. Most probably we can expect the rate going up and down in between 1.09 and 1.15.
However it’s still very hard to make predictions as long as uncertainty over Brexit is still not removed. As of now UK government proposed to pay 40 billion compensation for leaving the EU while Brussels expects it to be at least 60 billion. In reality the lowest boundary seems to be around 50 billion. Apparently the UK is trying to reduce this figure as much as possible but without success so far.
Probably now it’s good time only for EUR holders who want to by GBP currency. Let’s see how things will develop in next 3 months and if we will see any improvement in British pounds rate against mayor currencies.