Could the Pound push further?

By Luke Dyson

As we draw towards the end of the month, Pound sterling to Euro is still holding strong, and still maintaining its position at the top of its current range.

Moving forward we have the General Election on the 4th July. Day by day we could begin to expect higher volatility for sterling-based pairs. More than likely everything is priced in for a Labour majority, however anything can happen on the day and this could massively impact sterling negatively or positively if the results were an unexpected shock or hung Parliament.

For the rest of this week it’s a relatively quiet one for Sterling data-wise. The only thing to keep an eye on is GDP at 7:00am Friday. Depending on the result of this it could impact the current rates. However this isn’t normally a big market mover.

For the Euro we have some big changes towards the end of this week with the French election commencing on the 30th June  and finalising the 7th July. The polling data so far suggests a hung parliament, so no clear single party majority. If this was to happen it’s possibly the worst case scenario for France as they face a pile of debt that needs to be attended to in a decisive manner.

While this is all up in the air at present, the French election could start to impact the eurozone’s economy. The ECB has announced it will be likely they will look to drop interest rates further in an attempt to help this matter.

With a few busy days ahead for sterling and euro, the current rates look good, given the market is still at the top of its range. This could easily change following outcomes of data or elections shortly. Even a 1 cent drop would cost you €1,500 on a typical €150,000 property purchase.

Please get in touch with your currency consultant today to discuss options to help limit your risk or if you’d like to talk through securing currency at the current highs.