The Pound Sterling has been strengthening over the Euro as the Election Day in England draws closer.
The latest surge was reported after the last results of the election polls were revealed. According to reports in the local media, at around 8AM the exchange rate hit a high of €1.14979 to the pound – up from lows of €1.13972 earlier in the week. At the time of writing, the Pound to Euro exchange rate stood at €1.14298.
Sterling has risen by around 0.25 per cent against the euro, just two days before the general election which takes place on June 8. The rise in the pound’s value comes as the most recent election polls show Conservatives are only one point ahead of Labour. The survey by Survation for Good Morning Britain putting the Conservatives on 41 per cent and Labour on 40.
However, other polls show the Tories have a lead of up to 12 points. This means on average the polls suggest a seven point lead – the same margin the Toris won by two years ago.
With expectations that the Conservatives may win the election, the Sterling has covered a lot of ground. If the Conservatives win and form the government they will be in a stronger position to negotiate Brexit and that’s one of the reasons behind the recent strength of pound.
While the strength of the pound is great, the sterling will continue to face additional volatility because of the results of opinion and exit poles.
Last week David Bloom, an analyst from HSBC, predicted the exchange rate would plummet to £1 to €1 by end of year. But the latest rise has given some hope to investors and Brits holidaying in Europe this summer.
The pound has been going through a volatile time recently, due to a series of political events and the election will no doubt have an affect on its value.