The Pound vs the Euro exchange rates hit its best level to buy Euros since early May creating a 6 month high for the GBP/EUR currency pair. This good news appeared to have come from the political situation concerning the Brexit party.
Farage in boost to Tories
It appears as though Nigel Farage and his party will not attempt go for any seats which the Tories won back in 2017. This is an attempt to allow the Tories to try and win by a majority.
Farage has always campaigned on behalf of Brexit and with the Tories the only main party who appear to want to leave the European Union this means that the people who may have previously voted for the Brexit party may now look towards the Tories. If this happens this could lead to a Tory majority and the chances of them being able to push through Brexit next year will likely increase. This gave the Pound a much needed boost against a number of different currencies and the Pound has hit the highest level to buy Euros since early May.
Key UK economic data released
The jobs data published in the UK this morning came out rather mixed which has caused yesterday’s gains to be eroded. Although UK unemployment saw a fall to just 3.8% we also saw the release of a lower than expected Average Earnings data. UK inflation data is due out in the morning and this could provide the Bank of England with evidence to influence monetary policy.
The Bank of England recently voted with two of the members voting for an interest rate cut last week. This caused the Pound to wobble last week but it appears to be the political situation that is determining the main movement between the Pound and the Euro.
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.