The British Pound strengthened yesterday against many currencies, as the U.K. Parliament has taken control of the Brexit process. This has caused further anguish for Prime Minster Theresa May, whose Brexit plan could be completely changed.
The GBP/EUR interbank exchange rate reached highs of 1.1738, which is positive for clients looking to purchase Euros.
Parliament has voted on so-called indicative votes, looking to narrow down the Brexit votes which can get majority support. In total, 329 members of Parliament voted in favour of this motion. These alternative options could include a no-deal exit, cancelling Brexit altogether or a second referendum. Debating on these alternative Brexit options will take place later this afternoon, before voting takes place at 19:00. The results of this vote are expected at 21:00 this evening.
The Northern Irish Democratic Unionist Party (DUP) have stood firm against PM May’s proposed Brexit deal, and have stated they would prefer to delay Brexit by up to a year than agree to her current deal. This stance has caused PM May many problems in the past and does not look like changing.
Brexiteer Jacob Rees-Mogg has hinted that he is seriously thinking about backing PM May’s deal, as the threat of not leaving is becoming too great. Jacob Rees-Mogg is the head of the influential European Research Group (ERG), whose opinion holds weight in Parliament.
Sterling Euro forecast
The Brexit date has been delayed until at least April 12th 2019; we’re likely to see still more twists and turns in this ongoing saga. If PM May loses a third vote in Parliament, the UK will have until April 12th to either agree to a long extension, suggest a new course of action or leave the EU. This may affect the Pound to Euro interbank exchange rate in the near future.
If you need to complete a currency transfer and would like to discuss these factors, and their potential impact on the currency markets, please get in touch.