The current General Election is one of the closest in the last one-hundred years. There is a very strong possibility of a hung parliament due to there being no clear leaders and the only outcome seems to be a coalition government gaining power.
Looking back at currency charts when a hung parliament occurred back in 2010 we saw a sharp drop in GBP/EUR. Moving from 1.17 down to 1.14. The political uncertainty caused a lack of faith in the UK economy and I think a similar scenario will happen should a hung parliament occur again.
There was a recovery in GBP/EUR when the coalition was formed in 2010, but that was due to the coalition of the Liberal Democrats and the Conservatives being seen as positive in terms of the British economy. If it is necessary to form a coalition, will the parties involved be deemed as positive for the economy?
That is the million dollar question, and that is why if you have a Euro requirement it could be wise to take advantage of the very favorable rates at present.
Thank you for reading today’s Blog, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than than happy to assist you with any of your currency requirements. Feel free to e-mail me at firstname.lastname@example.org or call on 01494 787 478 and ask for Daniel Johnson.