The British pound to euro rate (GBP/EUR) plunged to historic lows today, on account of the voters' decision to leave the EU. We examine the latest euro-related fx forecasts targeting the sterling and the US dollar in the short, medium and long-term forex outlooks

While a UK exit from the EU has devalued the British pound to euro exchange rate sharply, other single currency forex pairings have been less supportive due to the potential ramifications of one of the EU’s member nations departing.

Notable Eurozone data today has been made up of the IFO surveys for business climate, current assessment and expectations in June, all of which have risen.

Commerzbank does however highlight the fact that the GBP to EUR exchange rate remains at similar levels to that of April this year:

"Because the market has been taken by surprise, sterling has already lost considerable ground."

"The euro and Scandinavian currencies likewise came under pressure. The typical “safe haven” currencies – Yen and Swiss Franc – strengthened. However, the FX market has not yet shifted into panic mode."

"EUR-GBP is not markedly higher than it had been in April, EUR-USD is trading above the March levels."

"The percentage change of sterling does not yet match the scale of the Swiss Franc’s move after the SNB shock on 15 January 2015."

Latest Pound/Euro Exchange Rates

On Sunday the Pound to Euro exchange rate (GBP/EUR) converts at 1.092 At time of writing the euro to pound exchange rate is quoted at 0.916. At time of writing the euro to us dollar exchange rate is quoted at 1.185. FX markets see the euro vs swiss franc exchange rate converting at 1.079. At time of writing the euro to australian dollar exchange rate is quoted at 1.623. FX markets see the euro vs canadian dollar exchange rate converting at 1.563. NB: the forex rates mentioned above, revised as of 20th Sep 2020, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.

ECB Speech Today, French Unemployment Stats Out Later

The euro vs pound exchange rate seems set to remain high, with UK currency forecasts extremely low in the near-term.

In terms of actual domestic data, European Central Bank official Ignazio Angeloni will be speaking in the near-future, while France’s claims stats for May will be announced later on.

In this latter case, forecasts have been negative, with expectations being for a rise in unemployment benefit claims to rise from -19.9k to 7k.

Pound Sterling (GBP) Exchange Rates in the Pits as UK Votes to Exit the EU

The pound sterling has been on an all-around slump against every possible peer today, on account of the historic decision made by UK voters to leave the European Union.

The decision has come as a great shock to the Pound and economists on the whole, as before results started coming in, polls had pointed overwhelmingly to a ‘Remain’ victory.

Although Sterling hit a high note after voting closed, it soon began to plummet as results came in and started to show a swing in favour of ‘Out’. An additional blow came recently when Prime Minister David Cameron announced his resignation.

Long-Term Uncertainty ahead for the GBP/EUR Exchange Rate as Market Meltdown Continues

The future is now a great unknown for the GBP exchange rates and the UK economy, although it seems at least a certainty that Sterling will remain soft for the near-term.

No notable domestic data is remaining today, therefore any Prime Ministerial news will likely influence any possible recovery for Sterling.

The first data due in the week to come will be Tuesday’s CBI reported sales results for June (source), though Sterling could still be in the dumps by then.

BoE Governor Attempts to Placate Wild Markets with Post-Brexit Speech

The UK currency will likely continue to trend in a decisive downwards direction over the course of the day and presumably the week to come, though in a bid to reassure investors, Bank of England (BoE) Governor Mark Carney has been talking about measures the bank will be taken in response to ‘Brexit’.

Giving a hasty press conference, Carney said:

‘The best contribution of the BoE is to continue to pursue relentlessly our responsibilities for monetary and financial stability. We've taken all the necessary steps to prepare for today's events’.

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