The Pound to Euro rate (GBP/EUR) has remained in a very tight range during the last few days as it appears as though the foreign exchange markets are adopting a wait and see approach towards Brexit.
There have been little economic data announcements over the last few days and this has kept Pound to Euro exchange rates from moving by too much.
However, it appears as though things are moving behind the scenes with Theresa May’s Cabinet looking to create contingent plans in the event of a no deal Brexit.
One positive to come out during the last few days for the political situation is that leading Brexiteer Jacob Rees-Mogg has said that, “under the Fixed-Term Parliaments Act I will always support the Conservative Government”.
He has been rather outspoken in recent weeks about his dislike for Theresa May’s Brexit deal and he was one of the politicians who was part of the group who wrote letters to have a vote of no confidence, so a change in his stance has come as a welcome breath of fresh air.
The next vote in the House of Commons is now due to take place in the third week of January so we could see some very big movements this time next month. If you’re comfortable with where Pound to Euro rates are currently trading and would like to avoid the uncertainty then it may be worth getting your currency organised at the moment.
Bank of England comments could affect Pound to Euro rates
The Bank of England are due to meet tomorrow and although I cannot see any change to the current monetary policy the tone of the comments immediately after the announcement will be key as to how Sterling will perform.
Bank of England Governor Mark Carney has been rather outspoken previously about how problematic the Brexit could be for the UK economy so it will be important to see what is said tomorrow afternoon if you’re in the process of making a Pound to Euro transfer.
We end the week with UK GDP data due out on Friday morning so expect to see a lot of movement on Pound to Euro rates on Friday, so make sure you’re well prepared.
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