Euro wobbles on French Election result

08-05-2017

The Euro strengthened marginally on Emmanuel Macron’s victory in the French Presidential elections against National Front member Marine Le Pen. The reason I believe that the Euro did not gain ground was that the markets had already priced in Macron’s win, the polls had him out in front for nearly the entirety of the lengthy election process. As of the time of writing this the Euro had already lost the gains it had made against the pound and was in fact weaker than close of markets on Friday.

The threat from the far right hasn’t been removed from France by a long way however. President Macron still has to contend with the Parliamentary elections, on a house divided so strongly from one political extreme to the other he will find it challenging to create a government that will enable him to move forward collectively on his polocies.

This picture of political instability and populist movements is painted across much of Europe and indeed the world in general. You need only to refer to Brexit, President Trump, Turkey as well as the far right nearly gaining control in France to see that the world is a chaotic place at the moment.

The markets do not like chaos and uncertainty. This is a golden rule of the currency markets and makes it increasingly hard to predict where a currency pairing is likely to move in the mid to long term in the current climate.

UK data has been fairly positive of late defying a lot of Brexit pundits predictions of near disaster for the Pound Sterling. There isn’t a huge amount of data release this week but Thursday sees the Bank of England’s interest rate decision, inflation report and monetary policy meeting. I think it is unlikely we will see any change of note though on Thursday as the Pound has strengthened recently and we are yet to even begin Brexit negotiations fully. It will be interesting to see if the BOE outlines any plans going forward or comments on the negotiations themselves. I expect a slight rise in the Pound if things remain how they are for now.

Currently rates are favorable against the Pound, particularly against the New Zealand Dollar which is substantially higher than it was a few months ago. I do not think this will be a long term gain as New Zealand’s trade deficit is narrowing and the prognosis is a surplus to be achieved within the year. Spikes like this should be taken advantage of as the UK’s own future outlook is looking considerably rocky because of Brexit.

If you have any questions about anything raised in this blog please feel free to email me at help@currencydeals4u.co.uk or use the contact form on our website www.currencydeals4u.co.uk

We aim to provide a high quality customer focused service and provide high street beating rates of exchange whether your buying or selling. If you have a particular currency requirement again feel free to email us at help@currencydeals4u.co.uk we will be more than happy to help you.

As an added bonus please enter SUMMERHOLS17 in the coupon box when ordering your currency to receive the preferential rate below £500 as well as above! This only applies to orders made through the website and ends Saturday 13th of May so act soon to gain even extra for your holidays!

Address:

Telephone:

Email address:

Opening hours:

Order Travel Money HELP!

Spend over £500 to qualify for the improved rate

Choose Currency

Standard Rate

1.3336

Improved Rate

1.3309

GBP

EUR

*Currency Collection will be rounded to the nearest whole denomination in store

Todays Rates

STANDARD

IMPROVED