Politics drive GBP/EUR and GBP/NZD

Pound/Euro rises to around €1.14

GBPEUR rates have recovered a little back to around the best it’s been in 2 months. On Friday, Theresa May’s speech knocked the Pound a little. The markets seemed to like the proposed 2 year transition period, but the fact she repeated that no deal would be better than a bad deal dented appetite for the Pound sending it lower on the day.

The German elections over the weekend however have helped to weaken the Euro pushing rates back up. Merkel won about a 3rd of the votes which will leave her scrabbling to form a coalition, and this uncertainty has weakened the Euro a little.

Today we have speeches by ECB members that could move GBP/EUR and of course any further Brexit developments could affect the value of the Pound. Later this week UK GDP figures and speeches by the BoE governor mark Carney are also likely to be a driver for Sterling exchange rates this week.

GBP/NZD rises after Kiwi elections resulted in a hung parliament. So again a coalition is needed and this has weakened the NZD a little making it a bit cheaper to purchase.

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