The EU summit is due to start today and many people have been adopting a wait and see approach as to what will happen to GBPEUR exchange rates. In the last couple of days a number of senior officials have been suggesting that a deal is unlikely and that an extension may be granted in order to allow the talks to conclude without facing a huge amount of pressure.
Brexit talks are currently in a stalemate with the Irish border issue and it appears unlikely that this will be sorted over the next couple of days.
At the moment the current plan is that there will be an EU border between Ireland and Northern Ireland but both the UK and the EU want to avoid having physical border checks. As yet both sides cannot agree on which way this will be solved.
If this week’s EU summit ends with little or no progress, an emergency Brexit summit is being planned for November. I think if a deal can be done, this could be the time.
Indeed, this week’s summit was the original deadline for the deal to be finalised, but with the Irish border issue still not sorted out I would be very surprised to see much resolution this week.
However, we have been surprised before by what has happened during previous meetings, so make sure you’re well prepared for all eventualities as we could see some very big movements for GBPEUR exchange rates in the days ahead.
Many of my clients who are in the process of buying a property in Europe have opted for a forward contract which allows you to fix an exchange rate for a future date and allows you to budget very early on.
If you’d like to discuss the EU summit taking place this week and how it could impact your exchange rate, or have another question you’d like to ask please feel free to use the form below. I’ll be happy to get in touch personally and discuss your enquiry.