ExchangeRates.org.uk – The Pound to Euro () exchange rate retreated at the start of the week as renewed UK political turbulence weighed on Sterling sentiment.Latest — Exchange Rates:
Pound to Euro (GBP/EUR): 1.14934 (-0.13%)
Pound to Dollar (): 1.36892 (+0.58%)
Euro to Dollar (): 1.19105 (+0.71%)
DAILY RECAP:
The Pound (GBP) came under pressure at the start of the week as investors reacted to a fresh bout of political instability in Westminster.Sterling sentiment was dented after the weekend resignation of Prime Minister Keir Starmer’s chief of staff, Morgan McSweeney, a move that has intensified scrutiny of Starmer’s leadership.
The departure follows growing backlash over the appointment of Peter Mandelson as the UK’s ambassador to the US, amid fresh revelations surrounding Mandelson’s links to Jeffrey Epstein.
Concerns that McSweeney’s exit leaves Starmer politically exposed have added to market unease.
Internal criticism of the Prime Minister’s decision-making and handling of the controversy has grown, fuelling speculation over internal fractures and whether Starmer can maintain his grip on the Labour Party.
Meanwhile, the Euro (EUR) found support on Monday, aided by its strong negative correlation with the US Dollar (USD).
USD exchange rates were pressured amid a rally in the Japanese Yen and renewed concerns about the resilience of the US labour market.
Reinforcing the Euro’s gains was the release of the Eurozone’s latest Sentix investor confidence index, which climbed to a seven-month high.
Near-Term GBP/EUR Forecast: UK Politics in the Spotlight
Looking ahead, in the absence of any major UK or Eurozone economic releases, political developments in the UK are likely to remain the primary driver of GBP/EUR through the first half of the week.
This could leave Sterling vulnerable to further losses, particularly if signs of eroding support for Starmer within the Labour Party persist.
Meanwhile, the Euro may remain sensitive to broader market dynamics, with the single currency potentially extending gains if the US Dollar continues to trade on the back foot.
This content was originally published on ExchangeRates.org.uk
