The Pound has been low against the Euro during trading today, in the wake of a shock US election result. Elsewhere, widespread GBP gains have been seen.
The Euro has appreciated heavily on the news that Donald Trump will be the next US President, though in both cases, these opportunistic advances may prove short-lived.
Pound Euro Exchange Rate Slips as EUR Gains More from US Turbulence
The Pound Euro exchange rate has been making rollercoaster movement recently, with GBP EUR sliding from initial high of 1.12 on Tuesday evening to 1.10 early on Wednesday.
The influential news for both currencies of late has come from the US, where it has been announced that Donald Trump has unexpectedly won the 2016 US Presidential Election.
The news initially sent the US Dollar tumbling, which set the Euro soaring in contrast. The Pound has risen against a number of its peers, though has not been able to overtake the highly-demanded EUR.
In domestic news, the UK has seen a trade deficit expansion in September, while in the Eurozone, Portuguese Q3 unemployment has dropped and Greece has seen its industrial production remain low in September.
Pound Sterling Predictions: Early 2017 to Bring Key Article 50 Appeal Result
The future for the Pound could move in two directions at the start of 2017, depending on how the Supreme Court rules when considering the Government’s appeal on the recent Article 50 ruling.
The Government’s appeal against being blocked from triggering the article is expected to come in early December, although the Court’s ruling isn’t expected until the New Year.
Should the Government’s appeal get accepted, the Pound is expected to tumble against the Euro due to the odds of a ‘Hard Brexit’ rising, while a rejection is expected to boost the GBP EUR exchange rate on the hopes that Parliament will be able to stall or prevent Article 50 from being triggered.
Euro Exchange Rate Outlook for Volatility if ECB Triggers Post-Trump Measures
The European Central Bank’s (ECB) response to a Trump victory in the US will play into the future performance of the Euro Pound exchange rate.
Already in the immediate aftermath, ECB official Ewald Nowotny has stated that;
‘We are definitely prepared to intervene in an emergency. What that will really look like, we must wait and see’.
Should the ECB implement further easing measures to counteract the widespread market unrest, the Euro is expected to sink against Sterling, owing to a long period of uncertainty likely following Trump’s surprise election.
Recent Interbank Exchange Rates
At the time of writing, the Pound Euro (GBP EUR) exchange rate was trending in the region of 1.12 and the Euro Pound (EUR GBP) exchange rate was trending in the region of 0.88.
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