The pound to Euro exchange rate has come off its recent peak seen last week as Brexit developments continue to create uncertainty for the GBP to EUR pair. This afternoon sees UK Prime Minister Theresa May make a statement in the House of Commons outlining what she will try and do next to find a way forward to secure a deal.
After a historic week in British politics last week which saw a major government defeat in the House of Commons as well as a vote of no confidence in the government itself. Today’s statement will come at 15:30 and there is much speculation as to whether a series of amendments will be put forward to try and remove power away from government and back to parliament.
There is also an expectation that Theresa May will seek to navigate a way around the controversial backstop and there may be a way to strike a bilateral deal with Ireland. Expect a volatile week for GBP vs EUR ahead of a parliamentary vote next Tuesday 29th January which could very much dictate the path of Brexit and hence the price of sterling. Of all the weeks this one has the potential to create some good opportunities for clients looking to buy or sell Euros depending on the outcome of events.
Aside from Brexit the European Central Bank (ECB) will meet this week for the interest rate decision. It is likely the Central bank will maintain interest rates at record lows but there is a growing likelihood the ECB will comment on the weakening economic growth in some of the bigger EU economies to include Germany, Spain and Italy. Whilst the massive asset purchasing scheme may have now come to an end there is every chance the ECB may review policy with a view to restarting the programme again if the EU economy looks set for further weakness. Such action would most likely result in Euro weakness and this in my view should be come a rolling story.
For more information on Euro exchange rates and for assistance in making transfers at commercial rates of exchange at the right time then please contact me James at firstname.lastname@example.org