The pound has fallen again today against most currencies after a substantial fall across the board yesterday. The Eurozone received unwelcome news in the form of weak retails sales numbers for December although it did little to impact on sterling Euro rates of exchange.
GBP EUR is now sitting just below 1.16 and the drop today is most likely as a result of a court case that was blocked in the high court earlier.
A new court case was put forward to the high court this morning which was being used to try to establish whether Parliament must be consulted on Article 127 of the European Economic Area Treaty.
This tackles the issue of remaining in the single market and whether or not UK Prime Minister Theresa May must go through parliament to give notice of the UK’s departure. However in a twist today the High Court have blocked the legal challenge and have stated that the case is premature. This is a win for the British government today but it also means for the time being that the harder type of Brexit is still the more likely outcome from all of this. To date a so called hard Brexit has proved negative for sterling exchange rates.
With Brexit literally around the corner the pound could come under renewed selling pressure as there is a degree of uncertainty that goes with invoking Article 50. GBP EUR may have considerably further to fall in the short term. Those clients looking to buy Euros would be wise to get in touch as the next 6 weeks are likely to see further pressures on the pound.
If you would like further information on sterling or Euro exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]