The pound has slipped back from its strong rally yesterday although still holding the higher ground against the Euro. Rates for GBP EUR have slipped from 1.19 to 1.18 which still presents a good opportunity for those buying Euros.
UK Gross Domestic Product (GDP) numbers released yesterday arrived stronger than expected which resulted in a short lived spike for the pound. UK GDP was revised up to 0.7% from 0.6% highlighting that the British economy has proved incredibly resilient over these last 8 months since the historic vote to leave the EU in June 2016. This stronger economy has been feeding through into a stronger pound over these last few weeks.
With just weeks to go now before Article 50 is invoked the pound is likely to be in for a rollercoaster of volatility. As I have stated on previous occasions the fact remains that no country has ever left the European Union. This reason alone carries a huge amount of uncertainty for both the Eurozone and the Euro although the immediate focus should be on Britain as this is where the spotlight will be shining on.
The Euro is also in for a very volatile period with the French elections now approaching. There is a currently a huge amount of scandal in French politics amongst some of the main presidential candidates although this is almost to be expected in France. With frontrunner Francois Fillon nearly out of the race having been dogged with the “Penelopegate” scandal it really does alter the odds.
The prospect of a Marine Le Pen win cannot be ruled out and the implications for the Eurozone and Euro should not be underestimated. Marine Le Pen has already stated that there will be a return to the French Franc after 6 months should she become President whilst also offering a Frexit referendum to withdraw from the EU unless concessions are given. This in my view would be extremely damaging for Euro exchange rates.
Clients looking to sell Euros and buy pounds would be wise to get in touch to try and maximise on the opportunities that we are likely so see in these coming weeks. Brexit and the French elections for me will soon become the biggest driving forces for GBP EUR exchange rates.
If you would like further information on sterling or Euro exchange rates and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on email@example.com