Conservative leadership contest to conclude tomorrow
The pound to euro exchange rate will likely be influenced on tomorrows vote within the Conservative Party regarding the next leader of the party, as the winner will become the Prime Minister of the UK. With little to no economic updates set for release today it’s likely that today’s pound vs euro trading session will be quite in anticipation of tomorrows announcement, and there will also be other releases this week that could impact currency rates so although today is set to be quiet, it may be an eventful week.
On Thursday this week there will be an Interest Rate Decision from the European Central Bank, and this is set to take place at 12.45pm, expect to see volatility on GBP/EUR rates on this announcement. We could also see movement in the US dollar this week that could spill over into other currency pairs as just under a third of S&P companies in the US will be reported this week as its Earnings season in the US at the moment.
GBP/EUR exchange rate: Boris Johnson most likely to become new PM
Despite the busy week of data excluding today, I think that for those watching the pound the biggest potential market mover will be the new Prime Minister announcement and this will be released tomorrow. Although Boris Johnson is the clear favourite to win, it could be the fall-out from his appointment that causes fluctuations and as we’ve seen over the weekend, some key figures are prepared to step down if Boris wins the vote, possibly causing further movement for the pound to euro exchange rate.
Philip Hammond, the Chancellor of the Exchequer had announced that he’s prepared to step down if Boris becomes Prime Minister. This is because Hammond does not think the UK should leave the EU in October without a deal in place. There could be further announcements of a similar nature so those following the pound’s value should be aware of this.
If you would like to learn more on the factors influencing GBP/EUR rates, or have an upcoming currency transfer, feel free to contact me directly with any questions using the form below. I look forward to hearing from you.