Pound under pressure owing to political uncertainty
The Pound has hit its lowest level against the Euro in 3 months by the close of business on Friday.
After hitting close to a 2 year high earlier this month the Pound has once again come under huge pressure against a number of different currencies.
Earlier this month it appeared as though the cross party talks between the Tories and the Labour party were progressing.
However, since then the talks have broken down with little progression after 5 weeks of meetings.
Prime Minister Theresa May has also announced that there will be another vote on Brexit coming in June.
The PM has suggested that if this deal does not get approved then she will announce when her resignation will take place.
This news has destabilised the markets and Sterling has decreased against the Euro as a result.
Fears are once again increasing as if May’s deal does not get approved then we could potentially see the chances of Brexit being concluded by October 31st decrease.
In the meantime, Boris Johnson has announced that he is considering going for the leadership of the Tories.
Johnson has remained a popular yet controversial figure so it will be interesting to see what happens if he managed to get elected.
As a Brexiteer he may be a popular choice for voters so watch what will happen next month.
Euro improves after strong German economic data
The Euro has also improved against the Pound after better than expected Construction data as well as rising inflation.
Inflation is a key indicator as to the health of an economy and typically rising inflation is combated by hiking interest rates.
This will provide the European Central Bank with evidence that they can think about raising interest rates in the future.
This has helped to strengthen the Euro with GBPEUR exchange rates having touched the lower end of 1.14 at the end of Friday’s trading session.
European election to cause volatility for Pound vs Euro rates
The European elections are due to take place towards the end of next week.
The Brexit party are likely to have some success next week and this could cause the Pound to come under pressure.
Therefore, if you’re in the process of buying Euros then it may be worth getting your transfer organised in the near future.
If you would like a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you.