Pound to Euro exchange rates have remained in a fairly tight range over the last few days and although we saw a brief lift for the Pound against all major currencies after last week’s Bank of England interest rate decision, when one of the nine members voted for a rate hike, it appears as though the currency markets are waiting with baited breath as to what will happen once Article 50 has been triggered.
With less than a fortnight to go before the end of the month the announcement has now been made that Article 50 will take place next Wednesday 29th March.
Royal Assent was granted last week and so the government are able to trigger the negotiations as soon as they like.
Last June when the Brexit vote was announced the Pound fell dramatically against all major currencies as the vote shocked the markets.
The difference this time round is that it is simply a matter of time but to me the delay means we could see problems for Sterling.
My argument is that if the UK was ready to start the talks why would they not have started them already.
One of the arguments is that the European Union will be celebrating their anniversary on Saturday 25th March so any decision to trigger the talks prior the meeting could be met with disdain from other European leaders.
The main problem with triggering Article 50 is that it means two potential years of political ping pong and generally speaking currency does not react well to uncertainty and so this is one of the reasons why I think the Pound will lose value towards the end of the month once the talks officially begin.
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