EUR/GBP Hits Seven-Month High as Election Weighs on Pound

09 June 2017 by News Desk   |   SHARE  

The pound deteriorated following the UK general election allowing other currency majors to climb. The initial fall came as exit polls hinted that the Conservatives may fall short of a majority. Sterling dropped giving the euro the opportunity to rise – this climb was extended on Friday morning and the single currency reached highs of 0.8843 at its peak during European trading. The Australian dollar managed to climb to highs of 0.59533 against sterling.

The Conservatives have joined forces with the Democratic Unionist Party (DUP) in order to have enough members to form a government.

Theresa May commented: ‘Our two parties have enjoyed a strong relationship over many years. And this gives me the confidence to believe that we will be able to work together in the interests of the whole United Kingdom.’

While other political parties including Labour have suggested that Mrs May should resign, the UK PM insists she wants to ‘provide certainty and lead Britain forward at this critical time for our country.’

Brexit talks are due to begin in 10 days and with political uncertainty rife, there’s plenty of opportunity for GBP/EUR and GBP/AUD to experience more exchange rate swings.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

Learn more about the Australian Dollar – Contact FC Exchange: Get A Quote

Want to live and work Down Under? Click here for expert help: Skilled Migration to Australia

Want to get a job Down Under? Click here for expert help: How to Get a Job in Australia

Click here for expert help with travel visas: Travel Visas to Australia

Click here for tourist information about Australia: Visit Australia