{"id":148118,"date":"2019-05-21T09:30:39","date_gmt":"2019-05-21T13:30:39","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=148118"},"modified":"2019-05-21T06:59:11","modified_gmt":"2019-05-21T10:59:11","slug":"european-elections-its-what-comes-next-that-matters-for-the-pound","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/european-elections-its-what-comes-next-that-matters-for-the-pound\/","title":{"rendered":"European elections? It\u2019s what comes NEXT that matters for the pound"},"content":{"rendered":"
May 21, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The results of the European elections have been largely priced-in for the Pound.\u00a0 It is what happens next with the Conservative leadership contest that will determine if Sterling will\u00a0prolong its run of losses.<\/p>\n

This is the bold observation from Nigel Green, CEO and founder of deVere Group, one of the world\u2019s largest independent financial advisory organizations, with more than $12bn under advisement.<\/p>\n

It comes as millions of citizens across the UK and the rest of the European Union head to vote this week in the pan-European elections.<\/p>\n

Mr Green affirms: \u201cVoters are likely to deliver a bloody nose to the UK and EU hierarchy in these European elections.<\/p>\n

\u201cIn the UK, due to the ongoing Brexit chaos, it can be expected that voters will move away from the two big parties, Conservative and Labour, and towards the Brexit Party, the Liberal Democrats, Change UK and The Green Party.\u00a0 This will dramatically change the political landscape.<\/p>

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\u201cIn normal times, this would cause the Pound to lose value against the Euro.\u00a0 But these are not normal times.<\/p>\n

\u201cThe groundswell has been building for sometime and the markets have largely priced-in this result, meaning there should not be a significant further drop in Sterling against the Euro.\u201d<\/p>\n

He continues: \u201cThe impact could be offset by a similar drop in the Euro if, as expected, populist parties across the eurozone do well at the polls.<\/p>\n

\u201cMarine Le Pen\u2019s far-right National Rally party in France, Matteo Salvini\u2019s The League in Italy and Gert Wilders\u2019 Freedom Party in The Netherlands, amongst others, have all\u00a0openly expressed scepticism regarding the Euro.\u201d<\/p>\n

However, it is what happens in the UK after the European elections that will determine the Pound\u2019s trajectory.<\/p>\n

Mr Green explains: \u201cWhether the Pound will\u00a0prolong its longest run of losses against the Euro since the single currency\u2019s introduction will depend on who imminently takes over from Prime Minister Theresa May.<\/p>\n

\u201cShould, as expected, The Brexit Party, led by Nigel Farage, do well at the European Elections, the chances are higher that whoever takes over from Mrs May following a leadership contest would push for a no-deal Brexit.<\/p>\n

\u201cThis would cause more downward pressure for the Pound.<\/p>\n

\u201cBoris Johnson, a frontrunner in the Conservative leadership contest to be the next Prime Minister, has in the past pushed for a no-deal exit from the bloc.\u201d<\/p>\n

The deVere CEO concludes: \u201cThe European elections might cause a minor knee-jerk reaction in the currency markets.<\/p>\n

\u201cBut all eyes should be on the battle for the Conservative leadership.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The results of the European elections have been largely priced-in for the Pound.\u00a0 It is what happens next with the Conservative leadership contest that will determine if Sterling will\u00a0prolong its run of losses. This is the bold observation from Nigel Green, CEO and founder of deVere Group, one of the world\u2019s largest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-148118","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=148118"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148118\/revisions"}],"predecessor-version":[{"id":148119,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148118\/revisions\/148119"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=148118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=148118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=148118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}