EUR up against GBP as May resigns

EUR up against GBP as May resigns

31 May 2019

At the end of May the British Pound is well on course to record the worst monthly losses against the  euro in two years. It is all due to the ongoing Brexit turmoil, that now has claimed the British prime Minister’s, Theresa May, position. As May resigns and there is launched a political battle on who will replace her, GBP’s exchange rate suffers deeply.

May has resigned, but who is next?

After failing to secure Brexit deal a couple of times, Theresa May – the prime minister of the United Kingdom – has resigned. She has lost voting on Brexit deal in Parliament numerous times, which resulted in the fact that the deadline of end of March to arrange Brexit was missed and new date has been set. Now no one is quite sure what will happen – a no deal Brexit, a soft Brexit with deal or maybe another voting on whether the UK should leave the EU. It all depends on who will replace May. She will stay the prime minister until her successor is chosen in the Conservative Party, but she will remain the leader of the party only until June 7th.  The new leader shall be chosen by the mid-July and he or she will most probably take also the prime minister’s job. There are many candidates vying to succeed May – at least dozen has step forward in last days. The bookies’ favorite is Boris Johnson. He is known from a harsh approach towards the EU. He claims he would try to negotiate better Brexit deal’s conditions, but if that fails, he will go for no deal and leaving the UE on Oct 31. There might be also a case that preliminary elections will be announced. Should that happen, the Conservative Party will be in troubles. In the recent elections for the European Parliament, it suffered a huge defeat and polls clearly shows that it would be on course for worse general election defeat in history, should they be held now.

The worst month in 2 years

All of these has taken its toll on the exchange rate of the British pound. Against the common currency GBP will most probably record the worst monthly losses in two years. The euro rose against the British pound on Friday for a second day in a row. GBP was trading at 88.4 pence on Friday, being on track for a monthly fall of 3% against the euro. On Thursday the exchange rate was at 88.15 pence. Against the US Dollar the British pound was at $1.2629, which is a level close to four-month loss of $1.2605 reached last week. On Friday the British pound was at $1.2611 against USD, remaining quite stable.

Worries for GBP

Experts worry that the British pound may hit 0.90 pence versus the common European currency. That might be the case, especially when a new Prime Minister will be euro-sceptic, as for instance Boris Johnson is, that is heavily tipped for the job.

Other currencies exchange rates

In other news from currencies market: EUR versus USD exchange rate rose by 0.1% to $1.1142. It was the first time EUR went up this week. The yuan went down by 0.1% against the USD to 6.909 per one dollar. The general Dollar index – the Bloomberg Dollar Spot Index – rose by 0.3%, which is the highest jump in more than five months.

Swiss Franc Euro Exchange rate

The euro exchange rate against the Swiss franc continues to fall and has already reached the 1.12 EUR / CHF threshold. At the moment, cross-border commuters can benefit from the favorable euro-franc exchange rate. At ExchangeMarket we also have more and more inquiries from customers who change money to buy a property abroad. It is especially worthwhile to compare the euro exchange rate at the banks and before major transactions. We recommend you to use our euro currency converter, which always takes into account the current exchange rates of and the banks. Change your money only at the best exchange rate in Switzerland.