In this Sterling Euro forecast, I’ll tell you how Prime Minister Theresa May appears to be edging towards a Customs Union. This is because Mrs May plans to meet German Chancellor Angela Merkel and French President Emmanuel Macron tomorrow in Germany and Paris respectively.
The talks will take place less than 1 day before the crucial EU summit on Wednesday, where the Prime Minister is seeking an extension to Article 50, to avoid leaving without a deal this Friday. Mrs May is seeking an extension until June 30, although the EU would prefer a longer extension of 12 months, with the option to depart early should the UK Parliament ratify a deal beforehand.
Rumours are circulating that the government is preparing to offer Labour a Customs Union to get a deal over the line. However, this could have severe consequences for the Conservative Party. Mark Francois, the Vice Chairman of the European Research Group, has already emailed the leader of the 1922 Committee, Sir Graham Brady, asking for an informal ballot on Theresa May’s leadership.
Mark Francois is stating that the Prime Minister’s actions are threatening to destroy the Conservative Party, and he is insisting that an “indicative” vote be held. However, as Theresa May survived a challenge to her leadership in December, under Tory rules she cannot be challenged for another year.
Meanwhile, Spain’s Foreign Minister has stipulated that the EU will accept an extension to Article 50, if there is enough support to push the cross-party Customs Union deal over the line.
When to buy Euros
Despite the busy political morning, the Pound has only moved a little, slightly down on the day, currently trading -0.25% against the Euro. That said, any move towards a Customs Union this week would likely boost the value of Sterling.
With another volatile week looming, should you have any questions about any forthcoming Euro transfers, please feel free to get in touch. You can email me directly here.