Homepage » Brexit » Euro Pound Exchange Rate News – British Brexit from European Union Sends GBP Plummeting

Euro Pound Exchange Rate News – British Brexit from European Union Sends GBP Plummeting

Pound Euro exchange rate forecast

  • Euro Pound Exchange Rate Spikes – EUR/GBP leaps past 0.80
  • Britain ‘Brexits’ EU in Shock Referendum Result – 51.9 ‘Leave’ to 48.1 ‘Remain’
  • Pound Free Falls to Pre-2000 Levels – Lowest levels for 30 years
  • Forecast: PM David Cameron to Resign – New Conservative Prime Minister by October

EUR/GBP Gains Look to Continue

Despite worries that the Eurozone’s security could fall as Euroscepticism rises across the European Union, the Euro is likely to continue gaining on the Pound in the coming weeks as markets panic on the UK news.

News throughout Friday added to uncertainty in Britain’s future. Scottish National Party (SNP) Leader Nicola Sturgeon revealed that a new Scottish Referendum was highly likely, with the aim of allowing the mostly ‘Remain’ Scotland to leave the UK and stay a member of the EU.

There have also been calls in the majority ‘Remain’ country Northern Ireland to reunify with the rest of Ireland – which is still a member of the EU.

As a result, speculation is rife that the United Kingdom could shrink to just two or three countries. This would also have a severe impact on the Pound’s influence and use.

On Friday afternoon, EUR/GBP trended in the region of 0.8155.

(Published 10:59 24/06/2016)

The Euro Pound Exchange rate soared past 0.80 overnight after the results of Britain’s EU Referendum came in with a shocking win for ‘Leave’. With the UK now set to ‘Brexit’ from the European Union, both currencies struggled but the Pound fell far further.

At the time of writing, EUR/GBP trended in the region of 0.8050 after having dropped to its lowest levels in 30 years, losing around 7% overnight.

Euro (EUR) Slumps, Dragged Down by Free Falling Pound on EU Referendum Result

The results of Britain’s EU Referendum ended in a way that has thoroughly shocked global markets, with the United Kingdom voting to Leave the European Union.

Positive German IFO data from the Eurozone was largely ignored by markets as they scrambled to adjust their positions to avoid the ongoing currency fallout.

The Euro itself fell the furthest since it was first introduced in 1999, and other Euro-associated currencies also suffered.

With the European Union’s ties to Britain, one of the world’s most influential economies, now set to be cut, fears have also hit the Eurozone that further fracturing is on the way.

According to the BBC, nationalistic parties from countries across the European Union are calling for their own EU Referendums, confirming fears from a few months ago that a ‘Brexit’ would incite further Euroscepticism across the bloc and harm the Eurozone.

‘France’s National Front leader Marine Le Pen said the French must now also have the right to choose.

Dutch anti-immigration politician Geert Wilders said the Netherlands deserved a “Nexit” vote while Italy’s Northern League said: “Now it’s our turn”.’

‘Brexit’ Cogs Begin to Turn, Pound Plummets and PM David Cameron Resigns

In what could be one of the most turbulent days in British economic history, the 52%/48% vote for a ‘Brexit’ has sent shockwaves that will be felt across the globe.

The UK’s Prime Minister, David Cameron, stated on Friday morning that he would have a successor as Prime Minister by October 2016. During a Friday morning speech, he said;

‘A negotiation with the European Union will need to begin under a new prime minister and I think it’s right that this new prime minister takes the decision about when to trigger Article 50 and start the formal and legal process of leaving the EU.

I will attend the European Council next week to explain the decision the British people have taken and my own decision.

The British people have made a choice, that not only needs to be respected but those on the losing side of the argument – myself included – should help to make it work.’

Bank of England (BoE) Governor Mark Carney has also stated this morning that the central bank would begin taking immediate steps to help stabilise Britain’s economy in coming years.

Sterling has of course been in free fall throughout the night, initially falling when the size of the ‘Leave’ camp was larger than polls predicted, before finally plummeting hard when the result was announced near 6 AM BST.

The Pound has plummeted to its lowest levels against the US Dollar since the 1980s. Uncertainty has taken hold of British markets as London stocks dropped over 8% and the FTSE 100 index fell over 500 points.

Euro Pound Exchange Rate Forecast: Big Changes Ahead for Britain and EUR/GBP Pairing

It should go without saying that the Pound is likely to be volatile going forward as markets and banks scramble to damage control from the shifts in Pound strength as well as sentiment across the globe.

Sterling could continue a steady free-fall for weeks, but investors are also likely to purchase the currency again when it settles at cheaper levels.

The Prime Minister’s announcement that he will be stepping down before October is also likely to be the source of strong uncertainty over the coming weeks and months.

Known for his charismatic campaigning for ‘Leave’, ex-London Mayor Boris Johnson is among the favourites to take up the position.

The Euro, on the other hand, will likely react in response to levels of Euroscepticism across other EU nations. France, Spain and Italy are among the countries with nationalistic leaders asking for Referendums.

At the time of writing, the Euro Pound exchange rate (EUR/GBP) was trending in the region of 0.8050. The Pound Euro exchange rate (GBP/EUR) traded at around 1.2450.