London, April 1, 2015
A question is being asked by many potential travellers this summer. How will all the political discussions in the UK affect the Pound and its relation to the Euro?
The Pound Sterling is worth 12% more compared to the Euro than this time last year, but many are wondering will this exchange rate increase or decrease after the election.
With political parties like UKIP gaining some ground on the traditional Conservative and Labour parties, investors could view this as an increasing trend towards British independence from the Eurozone and could lead to a drop in the value of the UK’s ever strengthening currency.
If the UK were to exit the EU and remove itself from the potential problems that it faces, due to the economic slump and collapse of several large member nations, it could have a knock-on effect on the UK currency that would see it de-valued in comparison to the Euro.
On the other hand, a solid victory by one of the major parties, and investor’s confidence in that party’s ability to enact meaningful and important fiscal progression, would see the Pound Sterling increase in value as it has been doing for the last few years.
With the election results still quite uncertain, the best advice from economic experts is to buy half your Euro’s now, and buy the other half after the election. Whatever the drop or raise in the rate will be, it will more than likely be fairly minor. The Pound Sterling is backed by solid and strong British investments overseas and the stability brought by our own, and the US economy, almost guarantees gentle progress.
Unless you are planning on buying multiple thousands of Euro’s, the change in the exchange rate from pre to post election is likely to barely affect travellers enough for it to be a serious concern.
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