Pound Euro rates impacted by political uncertainty

Pound to US Dollar rates influenced by political uncertainty in the UK

Six month high selling Euros

The Pound Euro rate is currently close to its lowest level all year. This is great news for anyone looking to sell Euros into Pounds. However, it is very concerning for anyone looking to convert Pounds into Euros.

The political landscape in the UK is very unsettled and we are now just three weeks from finding out the next Tory Prime Minister. The clear favourite appears to be Boris Johnson but things could still change.

Boris has been questioned a number of times on his plans for Brexit. He has claimed that the Uk will leave the European Union by the end of October. However, his plans still remain unclear and this is causing pressure on the Pound vs the Euro.

With Theresa May failing in her previous attempts to get the EU Withdrawal Bill I cannot see how Boris will manage to get things agreed. Clearly the House of Commons are not willing to accept the current terms so what will he be able to do differently?

The European Union have been adamant that they are not prepared to renegotiate. What the new Prime Minister may be relying on is that a number of key officials in Europe will be replaced this year.

If the tone from the EU softens then we could get some progress but I think it will be limited. Therefore, until we get further certainty I think we’ll see the Pound remain under a lot of pressure vs the Euro.

Could the Liberal Democrats increase their vote share?

Over the weekend it has been reported that the Liberal Democrats could get a huge share of the vote at the next election. They have been the one party with a clear message about Brexit.

The YouGov poll puts the Liberal Democrats in the lead with 30 percent of the vote, ahead of the Tories on 24 percent. Clearly polls cannot be relied on but there is a gathering momentum for change to the current status quo.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident of being able to save you money compared to using your own bank.

For a free quote then contact me directly and I look forward to hearing from you.
Tom Holian