Pound rallies against the Euro

I was going to post something about the dismal weak £pound, but as it happens it’s looking like it all might change if a ConDem coalition happens. I hope to god that doesn’t happen, but I am planning to change some £s to €s this week so a good exchange rate will make me happy.

The Pound had dropped 4% against the Euro since the close of trading last night, while the UK currency has slumped to the lowest level in over a year versus the U.S Dollar, amid a combination of extreme volatility in financial markets and the political uncertainty surrounding the result of the General Election.

Britain officially has a hung parliament for the first time since 1974, with the Conservative Party recording the largest majority. Gordon Brown has indicated that Labour was seeking a coalition government with the Liberal Democrats, but the leader Nick Clegg has said this morning that the Conservatives should get the first chance to form a coalition.

The Pound has been in free-fall against majors this morning and the level of volatility is unlikely to subside until a sustainable government is in place. However, Clegg’s admission that he would prefer to discuss a pact with the Conservatives is somewhat of a surprise and may provide some stability to the foreign exchange market.

Hope fully this means the rate of 1.1762 €/£ I am seeing at the moment will be in place when my money gets changed.