The Pound Sterling took a sharp dive versus the common currency Euro, largely a factor of the relief felt over Sunday’s presidential elections in France. The voting, largely as predicted by analysts, yielded a win for Emmanuel Macron, the centrist candidate, and Marine Le Pen, a candidate for the far right. Investors’ concern over an outright win by Le Pen, also known for her anti-EU stance, has been diminished; Le Pen had said that she would consider withdrawing France from the EU if she is elected. Analysts say that now, with political concerns lessened somewhat, it will be economic data that will drive the Pound’s direction.
As reported at 11:17 am (BST) in London, the EUR/GBP was trading at 0.848 Pence, a gain of 1.30%, moving off of the session peak of 0.8507 Pence while the trading day’s low was established at 0.8452 Pence. The EUR/USD was also higher at $1.087, a gain of 1.35% and off the day’s peak at $1.0935.
Traders Eye UK Data
Last week, the Pound Sterling had gained nearly 2% versus the Euro, a 4-month peak, after the Prime Minister called for a June general election. The UK’s economy has been relatively resilient since last year’s Brexit vote, however, there is growing doubt over that continued resilience. This became apparent after the release of last Friday’s retail sales figures which were unexpectedly disappointing; preliminary Q1 figures which will be released at the end of this week could dispel or cement those concerns.