BoJo bounce for the Pound vs the Euro
After an unsettled last few weeks, Boris Johnson has finally been announced as the 77th British Prime Minister. He won against Jeremy Hunt by a huge majority, and this gave the Pound a much needed boost against the Euro. The vote was made by 160,000 Tory members, which accounts for just 0.4% of the British population.
It was expected that Boris Johnson would win, as he was the strong favourite owing to his tough stance on Brexit. Jeremy Hunt was originally a supporter of the ‘Remain’ camp, and so the chances of him winning were already very low when the campaign started. The real issue for the Pound against the Euro is the uncertainty caused by Brexit and, with the summer recess due to start this week, time is running out.
The deadline for the deal to be concluded is at the end of October and this means that, when Parliament starts again following the break, it will be left with just two months to get a deal agreed. As far as I’m concerned this simply is not enough time, and I think this could move us towards either another extension or the possibility of a general election. Both of these could cause problems for the value of the Pound vs the Euro in the longer term.
Euro forecast: European Central Bank meeting may weaken Euro
Later this week, the ECB will hold their latest monetary policy meeting. Expectations are for a change in September, so any hints of further easing coming in the near future could see some Euro weakness vs the Pound. The ECB are considering whether to increase Quantitative Easing or cut interest rates once again, so this could cause problems for the single currency.
If you would like further information or a free quote when buying or selling Euros, then contact me directly for a free quote and I look forward to hearing from you. Tom Holian, firstname.lastname@example.org