GBP/EUR rates have surged over the past 24 hours, with the biggest single gains seen since the result of the EU referendum was announced. The Pound rose by over two cents against the single currency, hitting 1.1981 at today’s high. Sterling is benefitting from some political stability, following Theresa May’s appointment as the new Tory leader & Prime Minister, effective from tomorrow.
One of the key catalysts for Sterling’s woes over the past few weeks has been the political uncertainty created by David Cameron’s immediate resignation, following the Brexit decision. This uncertainty was anticipated to last until MP’s decided on their leader later this year but following Angela Leadsom decision to step down as one of the two remaining candidates, May’s run to number 10 has been cleared.
This has brought some much needed stability to the markets and investors risk appetite has increased, leading to Sterling’s run. Whilst we may now see Sterling continue its run over the next 48 hours, Thursday’s Bank of England (BoE) interest rate decision could bring any positive spike to a swift halt. With an expectation that BoE governor Mark Carney will announce a rate cut to 0.25% either Thursday or next month, or at the very least increase our current Quantitative Easing (QE) programme, the Pound’s recent gains could be short-lived.
If you have an upcoming GBP or EUR currency requirement and would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current supplier, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on [email protected]
