French Government in Turmoil – EUR Exchange Rates
Over the weekend the French economy minister stood down from his post following comments he made that the country should now be focussing on growth and not still on austerity. These comments led to a mini revolt with other members of the French government backing their compatriot up and ended with President, Francois Hollande telling his Prime Minister Manuel Valls to re-form a new government that was in line with his strategy. As a result there is a lot of political uncertainty in France and in fact, Mr Hollande’s popularity is the lowest for a French President in over 50 years according to the latest polls. France currently face high unemployment of around the 10% mark, very limited economic growth and now major problems with their political scene. As many regular readers will be aware, a stable political scene in a country helps their currency as investors will usually look to invest their funds where they will not only get a good return but they know their funds are safe, so any political uncertainty can lead to a currency weakening. So, the news from France at the moment is likely to be damaging for the Euro and if the problems persist then we could see Sterling benefit possibly presenting some excellent opportunities for those clients looking to buy Euros.
Scottish Vote Takes Centre Stage – GBP Exchange Rates
With political uncertainty rife in France over the weekend as we approach the Scottish referendum it appears the UK face a similar situation. Last night’s televised debate between the leaders of the Yes and No campaigns showed that there are many people still not sure which way they will vote and with about 70% of people polled last night stating that Alex Salmond had come out on top it seems there is a realistic chance Scotland will leave the UK next month but there are still many unanswered questions, one being what will they take on as their currency. Mr Salmond wants to retain the Pound Sterling while Alistair Darling, leader of the No party, stated that is was not a certainty they would be allowed to keep the Pound. Either way as we get closer to the vote the effect on Sterling could be negative as the uncertainty builds, and so for those clients that are looking to transfer funds internationally it will be worth staying in close contact with your currency broker here at Foreign Currency Direct plc so they can keep you informed of the latest currency news and the impact it may have on your individual requirements.
You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad call us on 0044 1494 725353 alternatively email me directly on firstname.lastname@example.org