Sterling Euro exchange rates and the impact of opinion polls (Tom Holian)

GBP EUR Looks to Employment Figures for Support

We are now just less than 2 weeks away from arguably one of the most important votes in Britain’s history when we vote on whether to Remain or Leave the European Union

Only a fortnight ago Sterling vs Euro was trading at its highest level to buy Euros for 4 months but since then Sterling has fallen by 5% against the single currency.

The main reason behind the fall has not been economic data which has been relatively mixed for the UK but the various opinion polls which have been released.

The Guardian poll showed 45% in favour of voting to Leave with 42% of the vote in favour of voting to Remain.

The Telegraph last week polled 19,000 of their own subscribers and the vote was 69% to Leave.

The most recent poll published by ORB showed the split again in favour of voting to Leave and with the uncertainty ahead we could see big falls for the Pound in the run up to the referendum.

With Sterling having crashed against the Euro in the run up to both the Scottish referendum and the General Election I think we could see a similar trend occurring and I expect further falls for Sterling in the lead up to 23rd June.

If we vote to Remain we could see a quick recovery for the Pound vs the Euro as it will provide the nation with the economic certainty and therefore encourage more global investment in the UK which could provide support for Sterling once again.

What is true is that currency is always adversely affected by uncertainty and until 23rd June if you need to buy Euros it may be worth organising this prior to that date.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you. Tom Holian [email protected]