GOOD MORNING FROM EURO FX Should I buy euros with pounds now?
EURO FX RATES TODAY
EURO = 0.8575
STG = 1.1200
With GBPEUR exchange rates performing relatively well in comparison to last year, there is a strong argument to purchase euros now. At present the Euro is under pressure due to Italian politics which is making euro purchases cheaper. Reports are suggesting that anther snap election could take place as early as the end of the summer. The concern for the euro is that the Eurosceptic parties could gain further momentum and therefore try to remove Italy from the euro.
Leader of the League Matteo Salvini, has gone one step further and stated it won’t be an election and in fact another referendum, insinuating if they gain more power and form a government they aim to pull Italy away from Europe.
However we are now one month away from the EU summit and both the UK and EU have made it clear progression needs to be made in regards to Brexit. The main talking point is the customs union and Irish border. UK Prime Minister Theresa May is stuck between a rock and a hard place as she doesn’t want to break up the UK by allowing Northern Ireland to remain part of the customs union but at the same time she doesn’t want a hard border in Ireland. The problem is that she needs to pick one or the other.
Last week Irish Prime Minister Leo Varadker warned the UK and suggested “without the Irish border resolved there can be no withdrawal agreement”. A no deal I don’t believe is an option for Mrs May and in my opinion we would see a snap election before this happened.