The snap election called by the current Prime Minister, Theresa May is now just 2-days away and the race for number 10 now appears to be at it’s closest since the election was called.
The uncertainty surrounding who will win the election has inevitably resulted in a selling off of the Pound, as currencies tend to come under pressure during times of political uncertainty.
The election was originally called by May in order to pave the way of a smoother and more straight forward Brexit process, as political infighting within Westminster had begun to derail the current UK governments plans to carry out the Brexit negotiation process. Now that there is no clear front-runner to win the election the Pound is under pressure, as a Hung Parliament doesn’t bode well for paving a clear Brexit path.
In regards to GBP exchange rates I think this weeks election could be the start of new trading territory for the Pound in some cases. I wouldn’t rule out a move below the current support level of 1.1350 for the GBP to EUR rate this year should we see a Labour win or a Hung Parliament, but then a Conservative majority would result in a move back into the late teens and maybe even above 1.20 should UK economic data releases continue to impress.
I’ll be happy to discuss the current trends between the Pound any other major currency pairs also should any of our readers wish to?
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.