The euro pound at its lowest level after three months after Theresa May's resignation

Pound under pressure after Theresa May resigns

The price of the pound to the euro has once again experienced a difficult week. GBP / EUR exchange rates are now trading at their lowest level in 3 months. The pound has been struggling due to political uncertainty as Theresa May announced her resignation on Friday. She has given two weeks to leave and in the meantime, the search for the next Conservative leader begins.

Boris Johnson and Andrea Leadsom are two of the best candidates. Both are pro-Brexit so it will be interesting to see if one or the other succeeds in being elected.

Will a pro-Brexit PM weaken the pound-to-the-euro rate?

This could cause problems for sterling's exchange rates because a pro-Brexit prime minister could increase the risks of a Brexit without agreement. Although a Brexit without agreement is extremely unlikely, it is nevertheless possible that this will happen. As a result, a pro-Brexit PM could pose problems for the pound in the face of the euro.

Whatever the outcome of the next two weeks, the price of the pound to the euro should experience great volatility during this period. Therefore, if you plan to make a currency transfer involving the GBP / EUR pair, it may be worthwhile to arrange it early next week.

Will Brexit happen?

If the new Prime Minister manages to galvanize the Conservative Party and push forward the Brexit withdrawal agreement, it could give the pound a real boost.

However, I think that since December it has become very clear that the House of Commons is not in favor of Brexit. The initial deadline of March 29 is now well behind us and I do not see much change regarding the conclusion of an agreement.

The next big problem for the pound sterling versus the euro is that of a possible general election in the coming months.

An election often leads to a lot of uncertainty, which augurs badly for the pound. Therefore, if you plan to buy euros for a foreign property in the coming weeks, it can be interesting to choose a futures contract, which allows you to set an exchange rate for a later date.

To learn more or if you want to save money on exchange rates compared to using your own bank, contact me directly and hope to hear from you.