Events that could affect the Pound (Daniel Johnson)

GBP/EUR – Pound to Euro exchange rate forecast French Election impact on GBP/EUR

Macron is now clear favourite following the first round of the French presidential election. Marine Le Pen, is a huge threat to the Euro with plans to ditch the single currency altogether. She has also stated her intention to hold a referendum in a bid to leave the EU. If she was to gain power expect the Euro to plummet in value.

The market moves on rumour as well as fact and I am of the opinion that a Macron victory is already factored into current GBP/EUR buoyancy levels, I think that if Macron does gain power there would be a slight improvement in Euro value, but nothing significant.

UK Election effect on the Pound

I think the UK election will be a very similar scenario to the French election. Theresa May has pulled a very shrewd move by calling an election while competition is so weak, a move Sun Tzu would be proud of. Usually, a snap election would cause the currency in question to weaken, but on this occasion Sterling strengthened upon the announcement due to the conservatives being so far in front in the polls. This is seen as a positive for the UK economy which caused an increase in investor confidence. I think if Theresa May gains power I would expect a small movement in Sterling favour, but nothing significant.

Is 1.20 a resistance point?

We have seen GBP/EUR get very close to 1.20 in the last six months only for the market to readjust, last week it hit 1.1994. If you have a Euro requirement short to medium term it is important to keep this in mind rather than having too optimistic a target.

GBP/AUD – Pound to Australian Dollar rate forecast GBP/AUD 7 month high

It is looking tempting for Australian Dollar buyers as present. We are witnessing a seven month high. I think there is potential for further gains for Sterling however due to the housing bubble down under and Australia’s heavy reliance on the Chinese. Data from china has been poor of late and has contributed to a weakening Aussie. Your time scale will be crucial in timing your trade.

If you have a currency requirement it is crucial to get in touch with an experienced broker. The timing of your trade is vital during such volatile times. If you have an experienced broker on board he/she can keep you up to date with what is happening in the market to help you make an informed decision. Should you find our information useful and you would like me to assist with your trade I will be happy to help you personally.

If you inform me of the the currency pair you are trading, volume and timescale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at [email protected]. Thank you for reading my blog.

Feel free to take a look at our UK election guide here.