Election result weakens the Pound vs the Euro (Tom Holian)

Pound to Euro Drops as Virus Drama Returns to London

In what has been a very interesting last few days we now know the results of the general election with the Tories the largest party but not being able to secure a majority government.

This means that they will look towards the DUP to provide enough seats to from a government and this looks like the most obvious and clear resolution.

Indeed, on Thursday night one of the members did even strongly suggest that they would be willing to form an agreement in the event of a hung parliament.

In what has been termed by many as a disaster for Theresa May there have been a number of calls for her to step down as Prime Minister but if she were to do this it could cause big problems for the Pound as it would throw up even more uncertainty for the UK and therefore Sterling vs Euro exchange rates.

As we now know it will be the Tories who will lead us forward in a another term and this means that the Brexit negotiations which are due to start on June 19th will be able to begin.

As we have already seen earlier this year the talks are not going to be straightforward and in my opinion I think they will be protracted and difficult.

Many of the European leaders have already spoken out against Brexit and therefore I cannot see how the talks will go well for the UK.

With this in mind this is why I think the Pound will continue to struggle against the Euro.

If you have a currency transfer to make and would like to save money on exchange rates when buying or sling Euros compared to using your own bank then contact me directly and I look forward to hearing from you.

Tom Holian [email protected]