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Pound to euro exchange rate: Sterling at 'highest level since 2016' as Tories win election


The pound is currently trading at 1.2048 against the euro, according to the latest data from Bloomberg at the time of writing. Sterling “surged” against the euro as the Tory party win a landslide victory at the Election overnight.

Speaking exclusively to Express.co.uk this morning, Michael Brown, Senior Market Analyst, at Caxton FX said: “Sterling surged to its highest levels since July 2016 overnight after the Conservatives won a significant majority at the general election.

“The pound’s move comes as markets price in the increased likelihood of a smooth Brexit at the end of January.”

The markets reacted to the news this morning, with various analysts sharing their insight.

Nigel Green, chief executive and founder of deVere Group, commented: “The pound has enjoyed its biggest surge in a decade on the hopes that a solid Conservative majority can finally end the Brexit deadlock.

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“Many traders were caught off guard by the size of the majority and this may push the pound even higher than previous predictions. We could see bullish traders now take it to $1.38 or maybe even as high as $1.40.”

He continued: “With more political certainty due to the large majority, the UK economy is also likely to receive an election bounce.

“Billions of pounds in business investment that has been on the sidelines due to the parliamentary paralysis is now ready to be unleashed. This will give a much-needed boost the slowing British economy.”

He went on to add: “The UK’s FTSE 100 will open higher on Friday morning. However, this is likely to be a positive knee-jerk reaction, with some gains likely to be given up throughout the day as most FTSE companies earn in dollars and the pound is stronger.”

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Ian Strafford-Taylor, CEO of international money specialist, Equals said: “This morning we learned that Boris Johnson will remain as the UK Prime Minister after the Conservatives won with a 72 seat majority (having won 361 seats with 645 of 650 seats declared) which saw the pound react positively as the results of the vote were announced.

“In response to the news, the pound has climbed 2% to 1.206 against the euro compared to yesterday, a high last reached in 2016.

“The pound has also risen two percent to 1.347 against the US dollar, a 19 month high.

“The rising pound is good news for those travelling into Europe and to the USA over Christmas, giving a boost to holiday spending.

“Those who have a trip planned in the next few days or early in the new year you should keep a close eye on what the pound is doing if they want to get more from their money.

“Johnson called the general election as he felt a new Parliament was needed in order to break the political impasse over Brexit.

“Over the coming days it’s likely we’ll see the pound embark on a rocky journey as we wait to find out how Brexit will play out.”

The Post Office is currently selling the euro for 1.1389 for buys of £400+, and 1.1614 for buys of £1000+.

Holidaymakers will likely take advantage today and next week as Britons head to Europe for Christmas markets and ski holidays in their droves.



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