Pound to euro exchange rate hits two-month high after polls in France reveal support for Marine Le Pen’s far right party
The boost comes amid growing investor concern that Le Pen's National Front party might win the French Presidency
THE pound to euro exchange rate has hit a two-month high after polls in France showed support for Marine Le Pen's far right party.
Experts predicted the pound would drop against the euro earlier in the week due to a decline in wage growth.
However, over the past three days sterling has rocketed to a two-month high of 84.45 pence per euro.
It comes amid growing investor concern that Le Pen's National Front party might win the French Presidency.
A poll by by OpinionWay for ORPI, Les Echos and Radio Classique shows Le Pen has closed the gap.
However, Macron still holds a 58% to 42% advantage.
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Lukman Otunuga, an analyst with retail brokers FXTM in London, said: "The threat of politician Marine Le Pen winning the election...has sparked jitters."
Bruno Jeanbart, director of pollster OpinionWay, said: “It’s all about security.
"Le Pen is benefiting from the fact that [the other candidates] are all busy either bickering or unable to disentangle themselves from their many controversies.”
But the uncertainty is a boost for Brits travelling around Europe who will get more euros for their sterling.
However, it's not expected to last long.
Dayle Littlejohn, Senior Executive Dealer at Foreign Currency Direct, said: “If inflation continues to rise due to oil prices, items are going to become more expensive which in turn means retail sales numbers will continue to fall as wage growth dwindles.
“All in all this would be another reason why the pound would continue to lose value and something the Bank of England will need to monitor closely.”