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British Pound to Euro drops after Renzi Resignation

British Pound to Euro drops

The week has started very slow for the Euro at 1.20 coming off the back of the Italian referendum. Prime Minister Matteo Renzi resigned after loosing the referendum and fulfilling on his promise to step down. Stock traders saw this as an act of instability in the country and as presumed they dumped as much Euros as they could.


Since the drop markets have slowly risen back to a steady pace.  


"The swift recovery of the markets despite the ramifications that the referendum may have for the Eurozone is notable – in a year of financial shocks such as Brexit and the Trump election victories, it is entirely possible markets are becoming more resilient," Paresh Davdra from RationalFX.


Since Renzi’s announcement of his retirement, markets are keeping a close eye on Italy’s future in the coming months as banks will need to look for loans or other source of funding to balance their debts.


What does this mean for your money transfer?


Unless the Prime Minister of Italy is replaced before the year end, which is highly unlikely, then the circumstance dictate that the instability of the government will have an almost certain impact on the Euro. Nonetheless, this doesn’t mean you the currency rate will be consistently poor. In fact, it may get better before the year end. However it does mean keeping a close eye on when the best time to transfer money would be.


When is the best time to send money to Italy before Christmas?


Predicting the markets to get the best currency rate is almost impossible. Although, you may not be able to predict the rate, you can get the best of your money. Shop around for the best broker to get the best rate, Don’t settle for the first price you see. Keep an eye on Italy’s key dates to avoid getting unnecessary surprises on the exchange rate. Another tip is to send money online to Italy as it’s faster, so you can lock in a desired rate quicker, and could save you on overhead fee’s.   


For more on the information on the referendum watch the coverage below.

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