Pound to Euro exchange rates set for marginal fall and strong rise next week (Joshua Privett)

When entering the latter part of the month, economics takes a back seat, and as such the rollercoaster of politics will be at the forefront in governing Pound to Euro rates this week.

We begin with the French local elections, the final part of the French election cycle. This will decide whether the new President, Emmanuel Macron, has the majority he needs to govern effectively.

He is proposing a sweeping change to French labour laws and a host of new pro-business policies. This is why his initial election victory saw the Euro gain almost two cents against Sterling. Should a Parliamentary majority form, then it’s likely we will see further Euro strength given his ability to govern effectively will be cemented. Well, as much as French unions will permit.

In any case, polling is today and the result itself should see further Euro strength when markets re-open tomorrow.

However, the UK is also trying to consolidate political stability. There was a delayed announcement for the Conservative-DUP partnership last week, but the initial hints were enough to see the Pound flirst upwards agains the Euro. Confirmation should realise those hinted gains for Euro buyers.

Then their plans for a Government manifesto will have to be voted on in Parliament given that the Conservatives do not have the majority they need to rule as a single party. Furthermore markets are waiting to hear further news on whether a softer Brexit approach will be taken.

Euro sellers may be wise to seize any opportunities created by the French election result tomorrow. Conversely anyone with a GBP/EUR requirement should be monitoring political developments next week in order to give yourself the best opportunity to puchase at any peaks which emerge rather than a trough.

I strongly recommend that anyone with a Euro buying or selling requirement should contact me on jjp@currencies.co.uk to discuss a strategy for your transfer. I have never had an issue beating the rates of exchange on offer elsewhere, so a brief conversation could save you thousands on a prospective transfer.

For more news on foreign exchange rates and to request a free no-obligation quote visit www.currencies.co.uk