Pound fights back vs the Euro
The pound has finished the week positively against the euro after hitting close to its lowest level since the start of the year. This could be down to a number of different factors including a change in sentiment towards the pound after a big sell off earlier in the week.
With the Tory leadership election due to be concluded early next week could Boris provide the pound with a boost?
When we have had previous general elections, we have often seen a fall in the value of the pound in the run up to the result. Once a party has been elected this has often strengthened the pound vs the euro. The difference this time is that this is simply a leadership election rather than a general election.
However, I think once we have some certainty this could provide the pound with some support vs the euro. Therefore, if you’re in the process of buying or selling euros then pay close attention to what may happen early next once we know the new leader.
Brexit the real problem for the Pound vs the Euro
The real problem for sterling euro exchange rates is that of Brexit. This is likely to drag on for the foreseeable future. Both Boris Johnson and Jeremy Hunt have not ruled out a no deal Brexit and this is weighing heavily on the pound.
With the new leader due to come in next week and the summer recess due to start shortly afterwards it will be difficult to progress the Brexit talks before the 31st October deadline. Therefore, although I think we could see an increase in the value of the Pound vs the Euro I think the gains will be limited.
If you’re in the process of buying or selling Euros and would like to save money on exchange rates compared to using your own bank then contact me directly and I look forward to hearing from you.