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Weekly Market Analysis April 24th 2017 |
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Political developments boost GBP and EUR exchange rates The pound rocketed higher on Tuesday after Prime Minister Theresa May called a snap general election for June 8th, with GBP/EUR striking a ten-month high of €1.1990 and GBP/USD reaching its best level in seven months of US$1.2855. Sterling may have held strong, but a swathe of concerning political developments kept the euro and US dollar on edge. Read on to see if things are likely to calm down in the week ahead... |
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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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| | “...Investors were worried by the potential outcome of yesterday’s first round of voting in the French Presidential Election.”  Transfer 24/7 with our currencies direct app   |
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Pound News of an upcoming election caused the pound to surge last week. Despite an initial wobble, the pound quickly rebounded, jumping to a ten-month high against the euro of €1.1990 and a seven-month high against the US dollar of US$1.2855. Meanwhile, the GBP/AUD exchange rate reached its best levels since the beginning of January this year. While elections mean political turmoil, investors were confident that the result would improve the outlook for Brexit. |
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Euro The polarising factors of domestic political tensions and geopolitical concerns caused the euro to seesaw last week. EUR/GBP fell to a low of £0.8339, while EUR/USD edged higher from its Monday low to a three-week high of US$1.0773. Investors were worried by the potential outcome of yesterday’s first round of voting in the French Presidential Election, but were also looking for safety as military tensions surrounding North Korea continued to build. Today the euro has bounded 1.2% higher against the pound and the US dollar thanks to the outcome of the French vote. But some analysts are warning that investors are getting ahead of themselves. |
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US dollar The US dollar was softened by rising tensions between the US and North Korea last week, with markets also questioning whether President Donald Trump would really deliver the economic stimulus they were hoping for. USD/GBP dropped to £0.7778, while USD/EUR fell to a four-week low of €0.9282. |
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Australian dollar & New Zealand dollar Investors were spooked by central bank news last week, while brewing military tension around the Korean Peninsula gave investors reason to think twice before getting involved in the risky Australian dollar or New Zealand dollar. AUD/GBP tumbled to £0.5848, while NZD/GBP took a knock from the UK’s general election announcement, falling to a nine-month low of £0.5456. |
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