The pound received a welcomed boost at the beginning of this week against its major currency counterparts, fuelled by positive rumours that Prime Minister Theresa May was edging closer to an agreement with Europe on the controversial Irish Backstop. This rally continued throughout yesterday and saw the GBP/EUR pairing reach almost three week highs of 1.15244, excellent news for those clients using pounds to buy euros.

 

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR2.5%€5,670
GBPUSD3.4%$8,690
GBPAUD3.5%$12,500
Economic data to drive Sterling currency markets?

It was announced yesterday that three Conservative MP’s have decided to quit the party and join a new Independent Group, which was set up by a group of seven former Labour MP’s. The group now consists of 11 with the addition of Heidi Allen, Anna Soubry and Sarah Wollaston, who had been supporting the idea of a second referendum, and these latest resignations now put Theresa May in an even trickier position in Parliament, as cracks continue to show within her party.

This helped GBP strengthen against EUR and USD, as the chances of a no deal Brexit edge further away once again. Although this is bad news for Theresa May who is already struggling to gain support from her colleagues, which will be crucial to securing the Brexit deal she wants, changes in the political landscape are all positive signs that the UK is not heading towards a no deal Brexit.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.