Pound/Euro exchange rate weakens after UK Prime Minister Theresa May announces resignation

What we were all waiting for, finally happened! Prime Minister Theresa May announced here resignation date of Friday the 7th June, 2019. She made the announcement following several failed attempts to deliver her Brexit deal.

Now we will have to wait to see who might lead the way. Boris Johnson announced his plans to run for the post but Michael Gove, Dominic Raab and Jeremy Hunt are listed as potential prospects.

Will Theresa May’s resignation strengthen the pound?

The pound has seen 14 days of consecutive losses against the euro in the run up to today. Her resignation means the possibility of a Brexit deal might be less likely, and the chances of another delay or a no deal Brexit more likely. This could continue to add to the uncertainty in the market, and continue to put further pressure to weaken the value of the pound.

Pound/euro forecast: How could the European elections affect GBP/EUR exchange rates?

With the EU elections taking place and due to conclude on the 26th May 2019, the results will be announced after 22:00 BST. There are a total of 751 seats, and the current expectations are for the European People’s Party, the Progressive Alliance of Socialists & Democrats and the Alliance of Liberals and Democrats for Europe to win over 50% of the seats. If this is the case, we might see the euro strengthen and create an opportunity for those looking to sell euros.

If you are selling euros and would like help to get highly competitive rates whilst being supported with regular economic information, please do not hesitate to contact me.