The EU Referendum is now only 2 days away and yet Sterling continues its rally against a number of major currencies, noticeably the US Dollar and Euro. The strength of the Pound appears contingent on the bookmaker odds and recent poll over the weekend suggesting that the UK is on path to a Remain vote.

Now with GBPEUR rates in the 1.30’s at the time of writing, is now a good time to buy Euros?

What to consider when buying Euros

If you are planning on travelling within the EU, or are looking to purchase property, you may need to consider the potential implications of a Brexit on your requirements.

Although GBPEUR rates are strong, the uncertainty that a Brexit could cause may impact rights, taxation and healthcare of UK citizens. I would be cautious of any long term investment within the EU until we know the ramifications of a Brexit – if the vote was to swing that way on Thursday.

Buying Euros with a stronger Sterling is ideal but rendered useless in the event you opted out of purchasing property within the EU. On the flip side, a Brexit may open an opportunity for Euro sellers on the back of a weaker Sterling.

If you are buying Euros for a wedding, or family holiday for example, buying this side of the Referendum may be a good idea. With no long term investment involved, you are safeguarded from any potential losses in the event of a Brexit.

Will the UK remain in the EU?

If the latest polls and bookmakers have it right, the UK will remain with the EU come results on Friday. That being said, polls are not always indicative of final results and bookmakers are not always correct. Polls have been neck on neck over the last few months and there is no clear direction as to which way the vote will go.

I would therefore advise that you take advantage of the stronger Sterling whilst the opportunity is open, but air caution if you have long term investment plans.