Pound to Euro exchange rate: Sterling boosted as Theresa May prepares to take office

Stability: Theresa May is set to be in post by Wednesday
Jeremy Selwyn
Hannah Al-Othman12 July 2016
WEST END FINAL

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The pound has been given a welcome boost above the Euro since news broke that Theresa May is set to be installed as prime minister.

Brexit-backer Andrea Leadsom pulled out of the race for the Conservative party leadership on Monday, which ultimately confirmed Mrs May as the new PM. She is due to be in post by Wednesday.

The news prompted a boost to the financial markets, which have suffered since the country was plunged into instability when the UK voted to exit the European Union on June 23.

The pound has dropped to a low of more than 30 years, as Britain faced political turmoil.

Although the Sterling is still struggling, the news that Mrs May will be in post this week has seen the pound to Euro exchange rate rise to 1.1802 today, while the Euro to Pound Sterling exchange rate was at 0.8472.

May was the preferred candidate in the financial world, as although she has said she is committed to Brexit, she does not share Leadsom's anti-EU stance.

She is also seen as the more experienced candidate, who is likely to bring greater stability to the UK.

Daniel Vernazza, Lead UK Economist at UniCredit, said: "Leadsom was one of the faces of the leave campaign and was likely to favour a 'hard Brexit'; that is, meaningful restrictions on free movement that is simply incompatible with access to the single market.

"In contrast, Theresa May backed the campaign to remain in the EU and, although she has Eurosceptic tendencies, it is widely thought that Theresa May is more likely to seek a soft Brexit."

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