Pound Reaches New Highs Against The Euro

As the Easter weekend approaches the Pound touches new highs against the Euro and several other major currency pairs. A host of positive UK economic data has helped the Pound strengthen further over the last few weeks dampening fears of the damage caused by Brexit. Consumer and Producer price index’s all came out better than expected and has helped the GBP to Euro break through 1.17 market level giving the tourist rate a nice boost.

In the Eurozone the big event to watch this month will be the French elections starting on the 23rd of April with National Front Leader Marine Le Pen facing off against En Marche! Candidate Emmanuel Macron. Current polls show that Mr Macron will win but if Marine Le Pen wins this could cause significant problems for the Euro. Le Pen has already spoken of replacing the Euro with the French Franc and holding a referendum to leave the Euro entirely dubbed ‘Frexit’.

This would be a major blow to the Eurozone and may well pave the road for other Eurozone members holding their own referendums to leave the European Union in step with the UK. This cascade effect is the worst case scenario which would inevitably lead to Euro weakness and the possible dismantlement of the European Union. With the unexpected Brexit result and Donald Trump being elected President of the United States stranger things have happened!

Across the pond President Trump continues to be as divisive in his policies as we have come to expect. Following President Trump’s recent military action against Syrian President Bashar al-Assad’s Regime following the chemical attack last week the unexpexted is becoming the norm. President Trump has been flexing his muscles and in part I think this was a show of strength to the Chinese where he was holding trade talks at the time of the strike. This has made a lot of currency speculators nervous and has caused a slight slip to the US Dollar making current buying levels favorable. There will inevitably be a great number of shocks and spikes for the Dollar over the rest of the year as Trump continues to enact polices and test the waters internationally and domestically.

Remember to allow for the Easter period when making your currency orders. We will be open as usual across all branches from Tuesday 18th April. For an added bonus if you use voucher code EASTER17 when placing your order till the 18th of this month you will receive the improved rate on any currency order even if its under £500.

For any questions relating to any of the topics covered in this blog please feel free to email me at help@currencydeals4u.co.uk alternatively use our contact form on the website to message us directly.

Happy Easter from all of us at Currencydeals4u!