French election to dominate Pound Euro rates (Tom Holian)

We are just one day before the second and final round of the French elections and the latest polls are showing that Macron is leading with 61% to Le Pen with just 39%. However, we all know how unreliable polls can be as proved during 2016 with the Brexit vote and Trump winning.

At the moment there is little chance that Macron will not win but the real issue for me will be by how much.

If it is a landslide victory then I would expect the Euro to strengthen vs the Pound and if the vote is closer than many people think then I think we’ll see the Euro weaken as it shows still a big divide in France.

With Le Pen wanting to take France out of the European Union and also bring back the French Franc a Le Pen win would be a big problem for the Euro.

After the weekend the focus will return to the UK economy and the political situation. With the Tories already winning a huge amount of votes in the recent local elections it appears as though this could be one of the biggest victories in years and this could provide the Pound with some real support going forward.

However, one of the problems for Sterling will be when the Brexit negotiations start to take place. At the moment as we still do not know which party will win next month there is no point in starting any talks yet. Therefore, after 8th June the talks will start soon after as for me this could cause problems for Sterling.

If you would like further information or a free quote when buying or selling Euros then contact me directly and I look forward to hearing from you. As a currency broker with 15 years experience I am confident of being able to offer you better exchange rates than your own bank.

Tom Holian [email protected]