Pound vs Euro rates: The Pound has been trading in a very tight range versus the Euro this week. It appears as though the markets are adopting a wait and see approach. Theresa May is due to step down today but will remain until the Conservative Party find a new leader.
This could still take a number of weeks with 11 candidates still in the frame. There were previously 13 but James Cleverly and Kit Malthouse have stood down since. At the moment Brexiteer Boris Johnson appears to be the leading contender. However, at this early stage it is too difficult to predict who will win the leadership contest.
Whoever wins the leadership content should give us some direction as to which way Brexit may go next. This could have a big impact on GBP/EUR exchange rates depending on who leads the country going forward.
The 1922 committee, who had previously put pressure on Theresa May to step down, appear to be changing the length of time for the leadership contest. This means that candidates will need the support of 8 MPs rather than 2. Then they will need 16 in the first ballot and 32 in the following ballot.
Will Brexit be delayed? How could this impact Pound vs Euro rates
Michael Gove has claimed that he would delay Brexit if he comes in to power. He has made these claims as he thinks he can get a better deal if we do not rush things. He also thinks by making a rash decision this could lead the country in to a general election. If so, this could possibly give Jeremy Corbyn the opportunity to gain power, something that the Conservative Party clearly do not want to happen.
With little economic data due out in the UK today the focus will remain on the political landscape in the UK. Clearly there is a huge amount of uncertainty and this is weighing heavily on Pound vs Euro rates.
We could have further developments over the weekend so make sure you’re well prepared for further uncertainty surrounding Pound Euro exchange rates.
If you would like a free quote when buying or selling Euros, or would like to discuss anything you have read in my Pound to Euro forecast, then please contact me directly using the form below. I look forward to hearing from you.