Following the election of Emmanuel Macron, who will become the next French President, the Euro climbed to its highest level in six months to peak above $1.10.
The rise in the Euro wasn’t stratospheric, investors had pretty much ruled out Marine Le Pen winning the second round of the French elections and the Euro is currently sitting at £0.85.
Marcon winning means the European politics will settle down a little, good news for us here in the UK, even through he’s a staunch European and Le Pen would have been a much greater friend to Brexit. We need a strong Europe as a trading partner and even though we’re leaving the EU, stability is our friend.
In the short term it means that although with Brexit, the pound has been volatile, against the Euro it’s close to an average over a 10 year view.
With the Euro still relatively strong, it’s a great time to sell into the EU for British retailers and get paid in Euros rather than Sterling.
With the UK elections in June looking relatively certain to be a landslide for the Conservatives, currency conversions should hopefully remain pretty stable. However if the unexpected happens and Labour or a Labour coalition win that could send Sterling into a downward spiral as it’s likely to spook the money markets.
2 Responses
“[should] Labour or a Labour coalition win [the general election] that could send Sterling into a downward spiral”
wow, not even attempting impartiality any more? vote labour and die peasant scum!
nice. subtle.
if only germany would flog their cars cheaper the rest of europe could bugger off
who needs the rest