The Pound rallied following the snap election announcement but could there be further movements for GBP/EUR off the back of the French elections this weekend? The below table shows exchange rate changes for GBP/EUR, GBP/USD and GBP/CAD over the course of the last 30 days.
|Currency Pair||% Change||Difference on £200,000|
Theresa May’s shock announcement sends GBP soaring
UK Prime Minister Theresa May sent the Pound soaring to its highest levels in 2017 earlier this week, following her shock announcement that there will be a general election in the UK on June 8th. The Pound had been struggling against the Euro for the beginning of the month and from the start of the year for that matter, but immediately after May’s announcement on the 18th April, we saw the Pound gain by as much as 2% against the Euro in a matter of hours.
To put that in to monetary terms, a well-timed transfer of £200,000 in to Euros on the day could have gained you as much as €4,5000 extra in your pocket.
Usually with a surprise announcement like this, especially with regards to a general election, we would have expected to see the Pound lose in value. In this instance however, with the Conservatives looking likely at this stage to win a majority and therefore strengthen Theresa May’s hand in Brexit negotiations, we have seen the Pound benefit. The question is, as we edge closer to the Election Day deadline, will uncertainty and polls begin to weigh down on the Pound and reverse these gains?
How will the French elections this weekend affect GBP/EUR?
We also have the election in France approaching this weekend and with almost half of the voters still undecided on who to back and the polls agonisingly close, further volatility is to be expected for GBP/EUR rates on Monday morning once the results from the first round of voting begin to filter through. Our service is geared to helping you with the timing our your currency exchange in these volatile periods, so stay in touch with your account manager here who can act as your eyes and ears on any developments today and early next week.
There is a host of retail sales data due to be released at 9.30 this morning, with figures for March compared with February and the same period in 2016. The early consensus is that the figures are set to show a fall, which could see Sterling lose some of its momentum. Any clients who are selling Euros to buy Pounds may be sensible to move on any dips in the Pound’s value today as Euro volatility next week could reverse any potential Sterling weakness.
Planning around the French elections may be wise for both buyers and sellers of the Pound, especially given that two of the four candidates could be a concern for investors. Speak to our team today on 01494 725 353 and make us aware of your requirements.