Pound to euro exchange rate: What happened to GBP after Theresa May no confidence speech?

Pound to euro exchange rate: What happened to GBP after Theresa May no confidence speech?

The British Pound climbed on Wednesday morning following Theresa May’s Downing Street statement, where she commented on the vote on her leadership later today. The defiant Prime Minister vowed to contest the leadership challenge “with everything I’ve got”. And as the political chaos roared, Sterling went up 0.46 percent against the US Dollar at $1.2545 and 0.35 percent against the Euro to hit €1.1073.

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Earlier in the day the Pound had been below $1.25 but started slowly climbing ahead of Mrs May’s short statement.

Jameel Ahmad, global head of currency strategy & market research at FXTM, said: “There are generally so many concerns around the broad political landscape with Brexit and also domestically in the UK, that it concludes with a vision that there is no light at the end of the tunnel for the British pound.

“Indications that the EU is willing to consider compromises on a Brexit deal would be what is needed to help the British pound recover some ground, but that is unlikely to be the case.”

However, even at $1.25 against the US Dollar, the Sterling is still on a 20-month low.

Pound to euro exchange rate: The pound climbed against the euro after the prime ministers speech (Image: GETTY)

The Pound has not dropped to this level since April 2017.

And when it comes to the Euro, £1 would get you 1.1073 Euro.

This is up from 1.103 Euro earlier this morning.

But these figures are also down compared to 1.11 Euro on Tuesday morning, December 12 and a high over the past seven days of 1.2 Euros.

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The Pound hasn’t been this low against the Euro since August 2018.

Ian Strafford-Taylor, chief executive of currency firm FairFX said: “Compared to this time last year, the Pound is down three percent against the Euro and down 6 percent against the US Dollar.

“In the days and weeks to follow, whatever the outcome of this evening’s vote, it’s likely that the Pound will continue to be impacted.”

Mr Strafford-Taylor added political stability is “one of the biggest causes of volatility for currency.”

Pound to euro exchange rate: The GBP rose 0.35 percent against the euro (Image: GETTY)

The statement was supported by Andy Scott, an associate director at independent financial risk management consultancy JCRA echoes.

He said: “Sterling has seen some further large swings this morning, following confirmation that Theresa May will face a leadership challenge.

“Yesterday Sterling dropped to a fresh 20-month low of 1.2475 versus the Dollar, following reports of the threshold for a leadership challenge being reached.”

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