Post-Election Surge: Sterling-Euro Exchange Rate Breaks Free from Long-Standing Range

June 18, 2024 — 2 min read

Following the recent French election, the sterling-euro exchange rate has finally broken out of its long-standing range.

Here are some key highlights:

This week, the GBP/EUR exchange rate has reached the highest level since August 2022.
This rise follows Emmanuel Macron's announcement of a snap parliamentary election in France.
Growing support for the RM party has resulted in uncertainty affecting the euro.
Sterling has seen gains after UK GDP figures showed growth on expectation at 0.6% YoY.

For months the currency pair has been trading within narrow ranges of 1.14 to 1.1750, with investors closely watching political developments in the Eurozone. The outcome of Macrons announcement of the snap election has injected fresh volatility into the market, propelling the GBP to move much higher against the euro and bringing us into a new range of 1.18-1.19.

The election results have impacted the stability of the Eurozone and as a result traders have adjusted their positions leading to an increased demand for sterling as a hedge against euro weakness. The shift in the exchange rate highlights the sensitivity of currency markets to political events. Investors will continue to monitor how this influences the eurozone potentially leading to further fluctuations in the GBPEUR pair.

The Pound continues to be impacted by the uncertainty around the upcoming general election as a poll released on Friday showed the Reform UK party gathering momentum and currently attracting more support than the Tories. The market doesn't like this uncertainty over who the official opposition may become the 5th of July.

Don’t get caught out by unexpected market movements — act now to ensure you're well-prepared for any potential fluctuations. Contact us to discuss your requirements with one of our currency experts today.

The content within this blog post is not intended for use as financial advice. This content is for informational purposes only.

GBP/EUR Exchange Rate Snap Parliamentary Election Euro Uncertainty France Currency News