Andrea Leadsom withdraws from the Leadership race and the impact on Sterling Euro rates (Tom Holian)

After a torrid last fortnight with Sterling Euro exchange rates having dropped by as much as 12% from the high to low during this period the markets experienced a very brief increase when Andrea Leadsom announced her withdrawal from the leadership campaign.

This caused Sterling to rise very briefly against the single currency as it means we may now have a replacement for current Prime minister David Cameron in the form of bookies favourite Teresa May.

The stability and certainty could help to end Sterling’s recent poor run against the Euro. However, later this week the Bank of England announce their latest interest rate decision and we could see a change in monetary policy.

Bank of England governor Mark Carney has spoken out a number of times against the Brexit prior to the EU referendum vote and since the announcement he has suggested that the central bank could look at cutting interest rates or even increasing the amount of Quantitative Easing used by as much as £250bn.

The UK economy has wobbled since the Brexit vote and business confidence is at its lowest level for 3 years and clearly foreign investment has decreased during the run up to the vote and also since June 23rd.

You have to ask yourself if you’re a foreign investor in UK business why would you invest in a British company at this time whilst there is so much uncertainty both economically as well as politically?

The is good news for anyone looking to sell Euros with rates now at their best level to buy Sterling since November 2013.

If you have a currency transfer to make and want to save money on exchange rates compared to using your own bank then contact me directly for a free quote. Tom Holian

I look forward to hearing from you.