Last week, the UK saw a major political shift with the appointment of our new prime minister. This change has already begun to impact the markets, with the pound experiencing notable fluctuations.
The initial reaction saw GBP strengthen slightly against the euro and the US dollar, as investors reacted to the new leadership’s economic policies and promises of stability.
Despite the pound’s strength on Friday, it’s prevalent those with large transactions on the horizon remain cautious, as markets continue to digest the new PM’s policy plans.
Over in France, the run-off vote in the parliamentary election was rocked by violence as voters protested over the weekend. This morning, exit polls revealed the leftwing New Popular Front won 182 seats – more than Macron’s centrist Together alliance and Le Pen’s far right.
This morning alone, the pound strengthened almost a quarter of a per cent against the euro.
As we move forward, the focus will be on the new government’s ability to implement its policies effectively. Key economic indicators and further political developments will be crucial in determining the pound’s direction. We will continue monitoring these changes closely and provide timely updates.
Should you have any questions or any currency requirements, please do not hesitate to contact your account manager on 020 8108 5163.
