Pound exchange rates vs both the Euro and the US Dollar fell on Friday after various polls showed that the lead of the Tories vs the Labour party is decreasing.
When Theresa May initially called for the snap election in April the Pound Euro rate hit a 5 month high and since then although we have seen a relatively strong Pound up until a fortnight ago with GBPUSD rates tipping past 1.30 on a number of occasions.
The topic of inflation has started to reveal cracks in the British economy and therefore the value of the Pound. Indeed, although we have seen the release of a 45 year low for unemployment levels and better than expected Retail Sales and Average Earnings the good news has not filtered through to Sterling as inflation has been the overriding concerning factor.
A month ago when the snap election was called the reason why we saw such positive gains for Sterling was because it looked at the time as though it would be a clear victory for the Tories. However, the most recent polls have thrown up a surprise and it could be a lot closer when the vote takes place on June 8th.
For me personally I still firmly believe the Tories will win and as we are currently experiencing a period of uncertainty I think we’ll see the Pound recover from the recent losses when the official news is released.
The reason why I believe this to be the case is because when an existing government maintains the status quo this allows businesses to carry on and provides then with financial stability.
With less than two weeks to go if you would like to make a currency transfer and save money compared to using your own bank then why not contact me for a free quote. I work for one of the UK’s leading currency brokers and have done since 2003 so I’m confident that a quick email could save you a lot of money.
I look forward to hearing from you.
Tom Holian firstname.lastname@example.org