GBP EUR Slips Ahead of UK General Election (James Lovick)

The Euro could be in for a more settled period after all the recent uncertainty in the run up to the French elections. The Euro should now be relatively supported in the coming weeks after the appointment of Emmanuel Macron as French President.

The German ZEW survey is released today and could see the Euro make gains if the powerhouse of Europe is showing further signs of economic recovery. The Euro is also seeing a boost after a state election in Germany was won by Angela Merkel’s Christian Democratic Party. It is important as this seat has previously been held by a centre left party – It makes a the prospect of Merkel serving a fourth term even more likely and this could result in further Euro gains. The German election however won’t be until the Autumn of this year.

A more stable Eurozone is good news for the Euro and once this German election is out of the way then the critical Brexit negotiations should start to progress.

For GBP EUR the pound has moved lower from its recent highs, something that is typical as a UK general election looms. With just over 3 weeks to go before this election the pound is likely to see considerable volatility and in my view the pound may drop that little bit further. Those clients selling Euros for pounds may wish to consider moving in the run up to the election as a conservative majority as is expected could see the pound rally sharply after 8th June

If you would like further information on Euro exchange rates or any of the major currencies 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 protected]