Pound Euro exchange rates close to a 5 month high (Tom Holian)

The Pound has hit its best level to buy Euros since late last year after Prime Minister Theresa May called for a surprise snap election. This saw the Pound make gains vs the all major currencies including the single currency providing the best rate to buy Euros in months.

Over the next fortnight the second round of the French election is due to take place and at the moment it is a two horse race between Emmanuel Macron and Marine Le Pen.

The likelihood is that Macron will win however owing to what happened during 2016 with the Brexit vote and Trump winning in the US it would be foolish to think that Macron is guaranteed.

If Marine Le Pen does win this could be hugely problematic for the Euro as she has already spoken of her intentions to leave the European Union and replace the single currency with the French Franc.

Macron on the other hand is very pro-EU and is currently favourite according to the various opinion polls currently being circulated. Therefore, if he gets in this could provide some stability for the Euro against the Pound.

The UK election is also due in the next 6 weeks so there is a lot happening politically at the moment in the UK and on the continent so expect to see a lot of volatility for Sterling vs Euro exchange rates during this period.

If you have a currency transfer to make in the next month and do not have the full amount of the money available then it may be worth looking at buying a forward contract which allows you to fix an exchange rate for a future date.

This typically involves putting down 10% as a deposit up front and the balance payable by the maturity date of the contract.

If you would like further information or a free quote when buying or selling Euros then feel free to contact me directly and I look forward to hearing from you.

Tom Holian [email protected]