During yesterday’s trading session the pound to euro exchange rate climbed as sterling made gains against all major currency pairs and hit another 6-month high against the euro after the pair peaked at 1.1734. Since then sterling has managed to hold onto much of the recent gains, and at the time of writing the pair remain just north of 1.17 which suggests that the pair could consolidate north of the 1.17 handle for now.
General Election Poll: Conservative Party Lead Offers Support to Sterling
The boost to sterling’s value is being attributed to polls released over the weekend implying that the Conservative Party has extended its lead over the other parties contesting seats at the upcoming general election on the 12th of December. This will be the first December election in almost a century and could impact both the pound’s value and the route for Brexit depending on the outcome.
Election TV Debate Tonight
Perhaps the next potential market mover will be this evenings televised debate between Boris Johnson and Jeremy Corbyn. Rumours suggest that Johnson will attempt to steer the debate in the direction of Brexit and therefore we could witness market movement for the pound if any major announcements are made or alluded to.
Morgan Stanley Pound to Euro Forecast
Morgan Stanley, have predicted that the pound will continue to climb against the euro in the new year as the path for Brexit becomes clearer and investment within the UK increases. Although the pound has climbed to a 6-month high against the euro it remains lower than average over the past decade so should the UK economy return to normality we could see GBP/EUR trading comfortably north of 1.20. This is a level the pair have remained below for over 3 years.
Another potential market mover this this Thursday’s Monetary Policy Meeting Accounts which will take place around lunchtime and provide an overview of the area’s economy. Do feel free to register your interest if you wish to be updated regarding any market movements.
If you have an upcoming currency transfer and would like to know more on Brexit and factors influencing GBP/EUR exchange rates, you can contact me directly using the form below.