GBP EUR Higher Ahead of Prime Minister Vote

The GBP EUR exchange rate was 0.55% higher on Monday, as Britain gets back to normal after the weekend Jubilee celebrations. Boris Johnson is still under pressure as he inches towards a confidence vote in his leadership.

The GBP to EUR was trading at 1.1712 as it seeks to hold the 1.1700 support level.

Boris Johnson to face a vote of confidence on Monday

Boris Johnson was set to face a vote of no confidence in his leadership on Monday evening.

At least 180 Tory MPs need to vote against him to oust him from office – a vote to do would trigger a contest.

But the Welsh Secretary was not keen for Mr Johnson to go. Simon Hart said that, “Confidence votes and regime change risk handing the levers of power to those who will do the most damage to our country.”

“There is a reason why Labour and the SNP are the loudest voices calling for the PM to go,” he added.

However, many Britons want the Prime Minister to face a stiffer penalty from his Parygate rule breaches.

In an embarrassing turn for the PM, Britain’s ‘anti-corruption’, lawmaker John Penrose, resigned from his role on Monday saying he would vote against the Prime Minister in the confidence vote later in the day.

“I’m sorry to have to resign as the PM’s Anti-Corruption Tsar but, after his reply last week about the Ministerial Code, it’s pretty clear he has broken it,” he said on Twitter.

“That’s a resigning matter for me, and it should be for the PM too.”

Russia warns of escalation as US, UK supply more weapons

Hopes of a Russian ceasefire are fading after Russia warned NATO nations for continuing their support for Ukraine, saying “armed conflict will be drawn out” if those countries continue to send arms to Kyiv.

US President Joe Biden sent a large cache of short-range missiles to Ukraine last month in order to support the country’s fight. He has since pledged longer range missiles and the UK Defence Secretary Ben Wallace has since vowed to send long-range missiles to Ukraine.

In an interview on Russian state TV this weekend, Putin said: “In general, all this fuss about additional arms supplies, in my opinion, has only one goal – to drag out the armed conflict as long as possible.”

“If (long-range missiles) are supplied, we will draw appropriate conclusions from this and use our weapons, of which we have enough, to strike at those targets that we are not striking yet.”

On the economic data front, the UK has BRC retail sales figures on Tuesday morning with a confirmation of the recent PMI data for the UK and Europe. European GDP follows on Wednesday before the all-important European Central Bank meeting on Thursday.

The central bank is getting close to an interest rate rise and will surely give traders some clarity on the rate hike path for the rest of this year and next.

To get in touch and receive further insight into the factors that could impact your overseas payments, click the button below and complete the form on the Lumon website.

GET IN TOUCH