Pound to Euro exchange rates had flourished last week with the UK’s election announcement, but have deteriorated with developments in French elections just across the Channel.
Marine Le Pen is a divisive character, and markets were worried that if she managed to reach the second round of voting, that her opponent would be someone who could mount a minute challenge and struggle to take away much of the vote percentage from her.
Whilst Le Pen did make it through, making it possible for her to become the next President, the dream candidate for currency markets awaited her, Macron.
Unlike the other two candidates Macron is a much more palatable option. He is not a far leftist like Melenchon which will allow for competition from Le Pen over central voters, and nor is he a candidate marred by scandal like Fillon, who had been caught paying his wife hundreds of thousands of Euros.
This likelihood drove the Euro rally yesterday, but this is already beginning to recover on markets this morning, with the first credible polls of the election released in the UK over the next 24 hours. Will this support expectations of a 20+point lead in the polls for the Conservatives? This will be the turning point for GBP/EUR rates this week.
If you are planning to make a currency exchange involving the Pound and the Euro, it’s well worth your time getting in contact with me on firstname.lastname@example.org in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.
I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.
The pound has seen incredible gains across all of the major currencies following the surprise announcement from UK Prime Minister Theresa May yesterday that she will seek to hold a general election 8th June 2017. The markets took this news very well and the pound rallied across the board taking GBP EUR up to a high 1.1979 and GBP USD up to 1.2826. Sterling this morning continues to look supported although rates have tailed off from the highs seen earlier this morning. The Bank of England governor Mark Carney will also be making a speech today and this could create additional volatility for sterling exchange rates.
The House of Commons will meet at 12:30 today to discuss whether the election will go ahead although it is widely expected that Labour will support the motion. Any confirmation could lend further support for the pound today and could present slightly better opportunities for those clients needing to sell pounds. The markets generally believe that the Conservative party could win this election handsomely and this outlook is providing additional support for the pound.
Those clients looking to buy Euros with pounds could see a further boost after this weekend. The first round of voting in the French election will be held on Sunday and any suggestion that Marine Le Pen could do well in the final round in May could see the Euro weaken considerably. Rates are almost at 1.20 for GBP EUR but a big win from Le Pen could see those rates move higher to 1.22 with relative ease in my opinion.
If you would like further information on sterling exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com
This morning at 9.30 the UK are set to release their latest inflation numbers. The numbers are set to show a small decline to 1.9% which is 0.1% below the Bank of England’s target. I wouldn’t be surprised if the consensus if wrong for this one and inflation meets the 2% target which leads to sterling strength. This release is within the next 20 minutes therefore new readers will not be able to trade before the release however you would be able to convert currency and take advantage of our bank beating exchange rates later today.
Longer term the French election towards the end of this month and next could devalue the Euro as there are now four candidates that could actually win. Furthermore Marine Le Pen is ahead on the polls to win the first round. She has an anti EU stance and plans to pull France from the Euro if she wins.
It’s not all good news for euro buyers at any point Brexit negotiations could come to a halt when negotiators do not come to an agreement. I believe Sterling exchange rates will have a direct correlation to Brexit negotiations therefore unexpected falls could occur at any point.
If you reading this website for the first time as you need to convert GBPEUR, feel free to email me with the reason for the transfer (company goods, property purchase) and timescales you are working to and I will respond with my forecast and the options available to you firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
If you are already using a brokerage and would like to a free quote email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands.
Common clients I help on a daily basis are Sole traders, MD or FD of a company, property buyers and sellers. If you are one of the three and are currently using the bank to transfer your currency you need to be made aware that you could be saving money!