With head EU negotiator Michel Barnier’s deadline fast approaching (this weekend), sterling exchange rates are set to have a volatile couple of weeks. Mr Barnier announced 2 weeks ago that the UK need to show that progression has been made with the three key topics that are being discussed (EU citizens rights, divorce bill and Irish border) before trade negotiations can begin. Mr Barnier’s plan is to address the EU summit on the 14th and 15th December where the heads of state will vote on whether trade negotiations should begin.
However its not looking good for the UK and Conservative party, as a leaked diplomatic dossier has been released today suggesting that there is choas in the Tory party ranks. The report heavily scrutinising Boris Johnson and David Davis as it appears that Tory party members are not all singing off the same hymn sheet.
It has also been reported that President of the European Commission Jean-Claude Juncker will meet Theresa May in Brussels on the 4th December, ahead of the EU summit on the 14th and 15th. If no progression is made in the upcoming weeks, the next time the UK and EU will meet for formal discussions will be March and this will be a big problem for the UK Prime Minister. Personally I expect the PM to offer 38bn for a divorce settlement and make an offer in regards to EU citizens rights.
If the offers are accepted I expect the pound to have a great finish to 2017. The safe option for clients that are buying the pound is to take the risk out of their trade and buy sooner rather than later.
The company I work for helps the client understand the factors that are influencing the currency pair they are trading, whilst having the ability to offer exchange rates that the client wouldn’t be able to receive with their own bank. We have been in business for over 17 years and on a daily basis save clients money on currency transfers. Feel free to drop me an email or alternatively you can call the trading floor Monday morning and ask to be put through to Dayle Littlejohn to discuss your options 0044 1494 787 478.