We are now less than 6 weeks away from when the UK is due to leave the EU. At the moment, the future is still uncertain, as are Pound vs Euro rates.
At present, Prime Minister Theresa May is looking to renegotiate further changes to the Irish backstop agreement. However, she still has work to do for things to go in her favour.
The real problem with the current set up is that the UK could potentially end up remaining in the customs union. This is something that MPs do not want to take place.
Over the weekend, Theresa May has written to all Conservative MPs in an attempt to create some unity behind the party. This is because the next meaningful vote is due to take place on 27th February. The main challenge she faces is that of the Irish backstop arrangement. This has been evident in the number of the votes since the start of the year.
With just over a week to go before the next vote is due to take place the likelihood is that the European Union will not back down over the Irish border issue. This could see another loss in the House of Commons next week. Once again, this would highlight the problems Theresa May has in getting her Brexit deal through parliament.
There are a number of potential different outcomes over the next few weeks. I think the most likely outcome will be the UK looking to extend Article 50. This is because it’s unlikely that Theresa May will get enough backing to get Brexit through under her terms.
Clearly, neither the UK nor the European Union wants to have a no deal Brexit. So, extending Article 50 is arguably the safest option, and this could result in the Brext saga carrying on and on. It could be argued that this could help the Pound, as it avoids the risk of a no deal Brexit. However, at the same time it adds pressure to Sterling, as it merely provides further uncertainty during the course of this year.
If you have a currency requirement involving Sterling and the Euro and would like to save money on exchange rates compared to using your own bank then contact me directly for a free quote. I look forward to hearing from you.
Tom Holian firstname.lastname@example.org