Pound Euro rate hits 6 month high

Sterling vs Euro Exchange Rate Below 31-Month High, as UK Election Polls Tighten

The Pound is now trading data its best rate to buy Euros since May which has come as welcome news for anyone looking to send money to Europe at the moment.

The announcement made last week by Nigel Farage not to contest any seats that were won by the Tories at the last election has provided the Conservative party with a boost and this has seemingly given the Pound a lift against a number of different currencies including the Euro and the US Dollar.

Tories lead in polls

Recent polls have the Tories in the lead at the moment and if they manage to retain power could the get a majority? If they do win with a majority this could mean that a Brexit deal becomes more likely and could this be a reason for Sterling’s recent rise?

Markets like certainty and with the Tories taking things forward this has given the Pound a lot of support.

Party leaders due to speak to the CBI

Boris Johnson is due to speak later on at the Confederation of British Industry so any positive comments could see the Pound make further gains later on today.

There is limited economic data due out in the UK this week so the markets are likely to remain focused on the ongoing political situation. Therefore, if you have a currency transfer to make involving Sterling and the Euro then make sure you pay close attention to what is happening this week.

Tomorrow night Boris Johnson will take on Labour leader Jeremy Corbyn in a live ITV debate.

According to a poll published by Opinium the opposition are 16 point behind in the polls at the time of writing.

On Wednesday the UK will announce the latest Inflation Report Hearings. With inflation having dipped to 1.5% from last month’s 1.7% this could put pressure on the Bank of England to look at changing monetary policy once again.

If you would like to learn more about what may affect sterling rates next week or have an upcoming currency transfer, feel free to contact our currency specialists using the form below.