With only two days until the UK public vote on who they want to run the country for the next 5 years, all of my clients will have formed strategies in order to protect themselves from market fluctuations. It is important to note General Elections can have a major impact on the currency. Over the last election period pound vs euro exchange rates fluctuated 4 cents. To put this into monetary terms a €200,000 transfer would have cost clients an additional £4,350 at the low points of the day compared to the high.
The final days of campaigning appear to be security focused due to the recent tragedies within the UK. Labour leader Jeremy Corbyn believes that the cuts to the UK police force has had an impact on the safety of British people, where as Prime Minister Theresa May insists the police are well resourced. This debate will continue after the election, however will certainly be swaying voters at present.
Polling stations appear to be having a direct impact on exchange rates. It appears that when Labour gains momentum like they have been over the last 4 weeks the pound has been falling in value, showing there is a correlation. Therefore keeping your eyes on the polls could influence your decision if you trade before or after the election.
Since 8am this morning I have been asked who I believe will win the election and I still think the Conservatives will win a majority which could mean the pound recovers some of the losses we have seen over the last 4 weeks. However if I am wrong I expect further falls for the pound and GBPEUR to fall towards 1.10.
Quite simply if you are converting pounds into euros or euros into pounds within the next 6 months this election has the potential to have a major impact on exchange rates. If you have not already formulated a plan, feel free to email me with your requirements and I will respond with options available to you email@example.com.
If you are buying or selling euros this week, month or year and I have not covered the currency pair you are trading, I would recommend emailing me with the currency pair (EURUSD, EURGBP, EURAUD) and the reason for the transfer (company goods, property purchase) and I will response with my forecast and the options available to you firstname.lastname@example.org. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn.
** If you are already using a brokerage and would like to know if you are receiving the best rates possible email me with the exact figures and I will reply with our live price. This will take you a few minutes and in the past I have saved clients thousands! **