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Weekly Market Analysis June 12th 2017  |
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Currency volatility likely with UK general election, Fed rate decision in focus It’s safe to say that the general election didn’t go the way Theresa May had hoped. The political situation in the UK is now looking extremely fraught, with the Prime Minister still facing intense pressure to resign. Despite continued uncertainty, the pound has largely stabilised since last week’s shock result. However, GBP/EUR is still -1.6% lower than on Election Day at €1.1365, while GBP/USD is down -1.7% at $1.2742 after Thursday’s stunning developments. |
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Today's Rate The rates above are using the British pound (GBP) as the base rate. All rates are for indication purposes only. Prices can vary dramatically based on amount and delivery date. |
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| | “Labour was able to steal seats and vastly improve their voter share, leaving Theresa May facing the prospect of having to form a minority government on Friday morning.”  Transfer 24/7 with our currencies direct app   |
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Pound The pound took rather a battering at the end of last week as the UK’s general election confounded expectations of a landslide victory for the Conservative Party. Labour was able to steal seats and vastly improve their voter share, leaving Theresa May facing the prospect of having to form a minority government on Friday morning. Talks continue, but it is highly unlikely that the outcome will bring about the ‘strong and stable’ leadership she had campaigned for over the past few weeks. |
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Euro Largely gloomy projections from the European Central Bank (ECB) weighed on the euro last week. However, EUR/GBP shot higher towards the weekend thanks to the UK general election result and is currently trending around £0.8814. EUR/USD fared worse, today crawling higher to $1.1225 after sliding last week on the ECB announcements. |
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US dollar The long-awaited testimonial from former FBI Director James Comey on Thursday turned out to be something of a damp squib, although this was a relief for the US dollar. After two weeks of gradual decline, USD/GBP is currently trading around a three-and-a-half-week high of £0.7853. After ending last week on a high of €0.8953, USD/EUR has now slipped back down to around €0.8915. |
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Australian dollar & New Zealand dollar The political uncertainty surrounding the UK general election, the ECB rate decision and the US testimonial by James Comey, has helped the Australian dollar and New Zealand dollar to register strong gains. AUD/GBP is trending around a seven-week high a £0.5921, while NZD/GBP is trending around a near-ten week high of £0.5651. |
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