Despite trading in a mixed fashion against most major currency pairs today, the pound to euro (GBP/EUR) rate is currently up and trading towards the top of it’s daily range against the euro despite a number of domestic issues.
The headlines this morning revolve around the Prime Ministers position, despite Theresa May surviving a vote of no-confidence as recently as December there could be another challenge to her position as it’s emerged that around 70 local association chiefs have called for an Extraordinary General Meeting to discuss her position. If pressure mounts on her to step down, this time from a more grassroots level, we could see sterling come under pressure as it would no doubt increase the uncertainty surrounding Brexit.
Now that the UK has another 6-months to arrange the details of the Brexit arrangement, my personal take is that a change of leadership would result in a drop in the pounds value. It’s likely that politics will remain the key driver for Pound Sterling value but due to the delay and no deal being in place, I think that economic updates may be watched a bit more closely now, in case the uncertainty surrounding the UK results in a drop off in the UK economy.
Volatile pound vs euro (GBP/EUR) rates
This week is very quiet for economic data releases, and the pound’s value is surprisingly mixed so far today so it’s likely that political updates along with economic updates from outside the UK will be the main drivers of GBP value. It is worth noting that tomorrow at 9.30am the Public Sector Net Borrowing figures will be released, and this release will cover the amount of debt held by UK governments. If you would like to be updated regarding this release do feel free to register your interest.
On Thursday there will be a speech from the European Central Bank’s De Guindos, and this is also worth being aware of in case any references to monetary policy are made. The speech will start around 1.30pm.
For more information on how upcoming events could affect your GBP/EUR currency exchange, feel free to use the form below to get in touch. I’ll be happy to respond personally and discuss your requirements.