What is happening to the Pound to Euro exchange rate?
The lowest point on pound to euro rates in 2019 was 1.1062 and we have been very close to this of late, with current interbank rates at 1.1093. The rate has also been in the low 1.11’s and there is increased uncertainty surrounding this lack of clarity. We know the pound has been weak because of the ongoing political uncertainty for the UK, GBP/EUR rates are not shaking off the Brexit woes easily.
Investors await Conservative leadership contest results
Historically, political uncertainty weakens a currency, which is one of the factors which has driven the pound lower. The 22nd July conservative leadership election is the next event on the calendar which may deliver some significant movements as the market has been keenly awaiting this news.
Also, the 25th July is the beginning of the parliamentary recess, which is where we will see the UK Parliament break up until the 3rd September. Investors will be keenly watching this for further news relating to Brexit, it seems the direction of no-deal will not be quickly changed.
ECB monetary policy meeting: What could happen to Euro rates?
GBP/EUR could find itself volatile as the market also tries to include the prospects of the European Central Bank reducing or extending its QE program. A prime example of this would be at the upcoming 25th July ECB meeting, where the latest round of discussions will be begun. Interest rate decisions can be volatile times in the currency markets and this news is a date when the euro might be volatile, since the changing of economic plans can trigger movement on a currency.
Pound to euro exchange rates are looking healthy for euro sellers, at close to the best all year for selling euros for pounds. Clients with a position to sell euros in the future might benefit from a quick review of the latest news to get an update on the market and the latest news.