Pound Higher Against Euro as X-Rate Markets Welcome Theresa 'Soft Brexit' May to the Helm

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The Pound to Euro exchange rate bounced following the unexpectedly swift resolution to the UK leadership debate that will see Theresa May installed as the new Prime Minister on July 13th.

  • British Pound to Euro exchange rate today = 1.1802
  • Euro to Pound Sterling exchange rate today = 0.8472
  • Theresa May to become PM, markets hopeful 'soft-Brexit' outcome is likely
  • 0.25% interest rate cut forecast at Bank of England this week, but question marks hang over quantitative easing programme
  • Oversold conditions noted on GBP, invites a short period of consolidation

Andrea Leadsom, the pro-Brexit contender for the leadership of the Conservative party, announced on Monday she is to withdraw from the race for the keys to Number 10 Downing Street.

The move triggered a fast-moving chain of events within the Conservatives that ultimately confirmed May as the new leader of the party and her ascendance to Prime Minister will be complete by Wednesday.

This is good news for markets, businesses, and your everyday citizen who have been starved of certainty ever since the country voted to exit the European Union on June the 23rd.

We know May is committed to Brexit but she is certainly not cut from the same anti-EU cloth as Leadsom.

Furthermore, she has years of experience at the highest level in both the UK government and in Europe and markets will welcome news that an experienced leader has taken over the reins.

This is certainly a pro-GBP outcome and we noted a discernable bounce in the exchange rate following the Leadsom resignation, rumours of which were triggered at around 11:30 AM:

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