In this Euro rate prediction, I’ll examine how the Pound has remained stagnant today, waiting to receive political updates from the UK Parliament. The Pound to Euro high of the day is 1.1572 and the low of the day is 1.1521, so not much movement here.
Theresa May has come under increasing pressure, with Conservative Party members looking to change the rules surrounding another ‘no confidence’ vote against her leadership.
It was only December last year when the Prime Minister won a vote of no confidence. Legally, the Conservatives cannot bring forward another vote of ‘no confidence’ against Theresa May until December this year, unless parliamentarians opt to change the rules.
We will find out later this evening whether Theresa May could face another vote of no confidence soon. This development highlights deep frustration within the Conservative Party at the direction Brexit has taken.
If the voting goes against Theresa May, it’s likely she will be shown the door. This would raise expectations for both a General Election and a No-deal Brexit. If this happens, I would expect Sterling to drop in value, due to increased political uncertainty.
Brexit Party surges in popularity
Nigel Farage has set up a new Brexit Party, which has already built up a lot of interest. Some public polls show that they will have 27% of the votes. We have seen the return of Ann Widdecombe joining the Brexit party, which again has grabbed media attention. How far can the Brexit Party go and how much influence can it yield in Parliament? Only time will tell.
John Bercow, the House Speaker, has already stated that, unless there is a change to the Withdrawal Agreement, there will not be another “meaningful vote” in Parliament. To add to this, the European Commission has ruled out reopening the Withdrawal Treaty which was previously negotiated with the UK. Theresa May is therefore stuck between a rock and a hard place!
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