French Elections and impact for Pound Euro exchange rates (Tom Holian)

We are now just a short time away from the next event to affect the currency markets with the French elections due to take place this weekend.

At the moment we are seeing Emmanuel Macron with a clear lead over the more controversial candidate Marine Le Pen however as we saw last year we all know how wrong opinion polls can be and it will be the vote on Sunday which determines who will lead France going forward.

Clearly, Macron is likely to win and in my opinion I have little doubt. However, the issue for me is by how much will he win?

If the vote is closer than expected this will highlight the divisions in France and show there is a still anti-establishment feeling in France and if this situation occurs I think the Euro could weaken and we could even see GBPEUR exchange rates challenge 1.20 on the Interbank level.

With the UK general election getting in to full swing next week the focus will turn as to what may happen when the UK votes in early June.

At the moment it appears as though Theresa May will be the clear winner as there is no obvious challenger at the moment. Therefore, there is an argument to suggest Sterling strength when this takes place.

However, this also means that Brexit negotiations will have nothing in their way to properly begin and I think this could cause problems for Sterling in the longer term.

Having worked in the foreign exchange industry since 2003 for one of the UK’s leading currency brokers I am confident not only of being able to offer you better exchange rates than using your own bank but also help you with various options.

If you would like further information or a free quote when exchanging currency then contact me directly and I look forward to hearing from you.

Tom Holian [email protected]