Pound to Euro exchange rates remain on a weak footing ahead of the crucial meaningful vote in parliament 11th December next week. It has been a brutal week for Prime Minster Theresa May who had three defeats in the House of Commons as well as the government being held in contempt over the Brexit legal advice. Rates for GBP to EUR are sitting just above 1.12 for the pair and are unlikely to make any major gains ahead of the vote next week.
To add to the political uncertainty there have been reports that the Article 50 process could be delayed by 3 months if required or Theresa may could delay the vote being held next week. If you thought Brexit was coming to an end then think again as there could be many more delays if the deal does not go through in the House of Commons and all these different outcomes point to more uncertainly for the pound. Clients looking to sell Euros are seeing an excellent opportunity to convert into pounds and there is likely to be some more Euro strength ahead of the vote next week.
There is a very high chance that Theresa may will lose the vote but the immediate concern for GBP EUR is if the vote is lost on an epic scale. The Brexit deal she has agreed with the EU has been met with such hostility in the UK that a huge defeat could see the government fall. This prospect is keeping sterling exchange rates at low levels and there is still a very real risk of a no deal Brexit. UK services data also took a hit yesterday with the sector almost at the point of stagnation.
Although the EU is having major political problems in particular in Italy and France the markets are not as overwhelming concerned as they are about Brexit. President Macron has diffused the situation with the gilets jaunes (yellow vests) for the time being after the riots in Paris but his popularity is waning rapidly and he has been branded a President for the Rich having promised major reform in France.
For more information on Euro exchange rates and how to time the exchange at the optimum time then please feel free to contact me James at firstname.lastname@example.org