{"id":3738,"date":"2017-06-19T00:00:00","date_gmt":"2017-06-19T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100113-gbp-eur-brexit-struggles-may\/"},"modified":"2017-06-19T00:00:00","modified_gmt":"2017-06-19T04:00:00","slug":"100113-gbp-eur-brexit-struggles-may","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100113-gbp-eur-brexit-struggles-may\/","title":{"rendered":"GBP\/EUR Brexit Talks and Macron&#8217;s Landslide Victory in Focus"},"content":{"rendered":"<p>The pound has continued its sharp decline versus the euro as Britain braces itself for the start of the Brexit talks. Brexit nerves saw the pound drop 0.4% of its value versus the euro on Friday, finishing the week at \u20ac1.1414. Anxieties continued to get the better of the pound as the new week starts. Sterling has already been as low as \u20ac1.1389, although it\u2019s picking up slightly as Monday moves into focus.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p> When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/p>\n<p> For example, it could be written: <em>1 GBP = 1.13990 EUR<\/em> <\/p>\n<p> <em>Here, \u00a31 is equivalent to approximately \u20ac1.14. This specifically measures the pound\u2019s worth against the euro. If the euro amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/p>\n<p> Or, if you were looking at it the other way around: <strong>1 EUR = 0.87271 GBP<\/strong> <\/p>\n<p> <em>In this example, \u20ac1 is equivalent to approximately \u00a30.87. This measures the euro\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the euro.<\/em> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>Today, Britain and the EU will begin the first day of Brexit negotiations. David Davis, Britain\u2019s Brexit secretary, will meet with Michael Barnier, the chief negotiator for the European Union. No big clashes are expected for the first few weeks. Both sides will be looking to lay out their views, plan practicalities and set agendas ahead of the more complicated, detailed talks a little later down the line. However, this hasn\u2019t stopped investors from already getting nervous.<\/p>\n<p>The political landscape in the UK is far from an ideal one with which to be entering into these negotiations. UK Conservative leader Theresa May gave a very poor performance in the most recent general elections. Furthermore, she still needs to seal a deal with Northern Ireland\u2019s Democratic Unionist Party (DUP) to gain a working majority in Parliament. These complications, plus that fact she is fighting for her political position, make the direction of Brexit very unclear. Political risk looks set to keep the pound vulnerable in the short term.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>How does political risk have impact on a currency? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Political risk drags on the confidence of consumers and businesses alike, which means both corporations and regular households are then less inclined to spend money. The drop in spending, in turn, slows the economy. Foreign investors prefer to invest their money in politically stable countries as well as those with strong economies. Signs that a country is politically or economically less stable will result in foreign investors pulling their money out of the country. This means selling out of the local currency, which then increases its supply and, in turn, devalues the money. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<h2><a href=\"#french-macron-wins-a-solid-majority-in-parliamentary-elections\" name=\"french-macron-wins-a-solid-majority-in-parliamentary-elections\"><\/a>French Macron wins a solid majority in Parliamentary elections<\/h2>\n<p>The euro was also gaining in strength as the pound declined. Investors cheered a solid win for French President Macron\u2019s party La Republique En Marche, which won a large majority in the French Parliamentary elections on Sunday. The newly formed party and its centrist ally Modem, pushed mainstream parties aside to win 350 of 577 seats. This means that President Macron now has a strong mandate to push through his pro-European Union and pro-business reform policies. Macron plans to embark on reforms to boost the French economy and restore France\u2019s influence in Europe; both of which are good news for the euro. However, given that a substantial win for Macron was widely expected, the upside for the euro from this event could prove to be limited.<\/p>\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound has continued its sharp decline versus the euro as Britain braces itself for the start of the Brexit talks. Brexit nerves saw the pound drop 0.4% of its value versus the euro on Friday, finishing the week at \u20ac1.1414. Anxieties continued to get the better of the pound as the new week starts. [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3739,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1380,1379],"tags":[1386,1395,1394],"class_list":{"0":"post-3738","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eur","8":"category-gbp","9":"tag-brexit","10":"tag-eur","11":"tag-gbp"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GBP\/EUR Brexit Talks and Macron&#039;s Landslide Victory in Focus - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100113-gbp-eur-brexit-struggles-may\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/EUR Brexit Talks and Macron&#8217;s Landslide Victory in Focus\",\"datePublished\":\"2017-06-19T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/\"},\"wordCount\":761,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100113-gbp-eur-brexit-struggles-may.jpg\",\"keywords\":[\"Brexit\",\"eur\",\"gbp\"],\"articleSection\":[\"EUR\",\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100113-gbp-eur-brexit-struggles-may\\\/\",\"name\":\"GBP\\\/EUR Brexit Talks and Macron's Landslide Victory in Focus - 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