News has hit the wires this afternoon that an agreement timeline has now been put in place and that we may also expect to see an EU Brexit summit date of Novemebr 23rd.
Apparently this timeline is likely to include a cabinet meeting on Monday, Dominic Raab to meet with Michel Barnier on Tuesday along with the publication of the withdrawal agreement also being released. Theresa May would then be due to release a statement to parliament on Wednesday with a view to the arrangement of a Brexit EU summit for Novemeber 23rd.
Previously Dominic Raab had commented that he expected an agreement to be in place before 21st November and on that news a week or so ago the Pound did gain ground against the Euro, I feel that although this expected date is two days later there is still a good chance that this could give Sterling a further boost, as long as there isn’t any big backlash over the potential deal May is aiming for.
On the Euro side we are expecting a revised Italian budget to be released by November 13th, last time we had the Italian budget in the news it came with Euro weakness, as the Italian Government were not quite in line with EU expectations and this caused political uncertainty and a little Euro weakness on top of this.
Italy is a fairly sizeable problem for the EU at the moment, those who have bought or sold Euros for many years will remember the Greek debt crisis that reared up a number of years back causing significant Euro weakness. This isn’t quite on the same level at present, but the Italian economy is much larger than the Greek economy so should the problems in Italy continue to escalate then the Euro may have a fairly large headache to deal with in the coming months.
In my opinion I would not be surprised to see the Euro have a small period of weakness, most notably against the Pound and especially if a Brexit deal is agreed. if you are in the process of buying or selling Euros against the pound or any other major currency and you would like my assistance then you are more than welcome to get in contact with me directly for a no obligation discussion.
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