Thursday is the UK election which is really the main event for GBPEUR exchanges this week, the results becoming available from early Friday morning. Last minute polls will without doubt influence the rates which could be seen to be higher or lower depending on where they see the polls pointing. Tomorrow is very important for the Euro because we have the latest ECB, European Central Bank meeting where they will discuss their latest views on monetary policy. All in all the current ranges on GBPEUR seem likely to persist throughout today and tomorrow before Friday is the big day for price action where we will see markets digest the UK election.
GBPEUR has been fairly range bound all year trading between 1.13 and 1.19. The current level of 1.1453 is some 4 cents down from the highs when Theresa May called the election and is reflective of her fall in the polls and approval ratings. With much of the political uncertainty in Europe removed for now markets are rightly shifting attention back to the UK and the fears over Brexit. Ultimately this election whilst important is really just all part of the Brexit readjustment in the UK and has to be seen in the light of how it changes Brexit, because it does. It will either give Theresa May more of a mandate or it will reflect badly upon on her.
At extremes it could see Jeremy Corbyn win or a hung parliament which would only serve to complicate the process. Although paradoxically this might help the pound rise against the Euro since a ‘softer’ Brexit might then be a real possibility.
The 2010 and 2015 election saw big movement on GBPEUR as did the Scottish and of course, the EU referendum. We know these large political events have the power to move markets and often there are surprises. To best help navigate such uncertainty we can help by offering a range of contract options to limit the volatility including a Stop / Loss or Limit order which helps guarantee your price if your desired rate becomes available.
For more information at no cost or obligation please speak to me Jonathan Watson, Associate Director for one of the UK’s largest independent currency brokerages by emailing firstname.lastname@example.org. I am sure I can offer you some useful practical information to help with the timings of any exchange plus offer a better rate than your bank or any other currency broker.
Thank you for reading and I look forward to hearing from you.