Parliamentary Vote crucial to Pound vs Euro levels
Theresa May saw her deal for Brexit accepted by Brussels this weekend. It took only 38 minutes by each 27 member states. This however did little to move Sterling as the true test for May’s deal will be to get it through Parliament.
There are many MPs who have openly criticised the current Brexit deal which could mean getting the deal through will be no easy task. The vote will take place on 11th December.
If the vote does not go through there is the strong possibility that Theresa May will either be ousted from her position or resign. There has been a call for a vote of no confidence from Jacob Rees-Mogg. There is rumoured to have been as many as 35 letters submitted to the 1922 committee, with 48 required for a leadership challenge to commence.
Brussels have made it clear that the current deal is the best they are willing to offer and any new PM will not be in a position to negotiate a better deal.
If we enter a “no deal” situation there is the strong chance May will have to go, one way or another. Conservatives must be aware that by voting against the deal, there could be a general election on the cards which could lead to the Tories losing power. Odds from bookmakers have it at 50/50 as to whether the deal will go through. I am of the opinion the deal will be voted through in Parliament as the consequences are simply too great.
Pound vs Euro: When to make your exchange
If you are sitting on Euros and looking at risk vs reward I would take advantage of current levels, before Brexit the Pound vs Euro rate sat at 1.42 and the historical average is 1.25.
If I was buying Euros however I would hedge my bets, trading 20-30% of my requirement before the vote and the remainder after the vote.
During such unpredictable times you need an experienced broker on board if you wish to maximise your return. If you have a pending currency transfer let me know the details of your trade I will endeavor to assist. There is no obligation to trade by asking for my help, I will provide a free trading strategy to suit your individual needs. If you already use a provider I can perform a comparison within minutes and I am confident I will demonstrate a considerable saving.
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