Nothing upsets the markets quite like uncertainty.
Following the hung parliament of the UK election, one of the first things to be affected were the Sterling exchange rates, which went into a sudden and severe plunge as the results of the vote became clearer.
Starting off Thursday 1 Sterling to 1.15526 Euro, it dropped to €1.13394 last night, with the worst of it far from over, as it continued to drop this morning, to a low of €1.13068.
Image via XE.com
This will have a massive impact on Irish exporters to the UK, but while the significant 2% drop will be felt for days to come, it does appear that it will plateau out of the coming days until an actual decision is made for the parliament itself.
With many calling for May’s resignation, the potential for a softer-than-expected Brexit could lead to a more stable pricing for the Sterling in the not-too-distant future.
In the meantime, keep an eye on the exchange rates should you be heading to the UK some time this week, as you will be more bang for your buck Euro than you’d probably expected.
