In today’s Pound to Euro forecast we look at the events of this week and the factors affecting exchange rates. Prime Minister Theresa May has managed to survive the vote of no confidence yesterday evening with a majority of 83 votes and this has helped the Pound to Euro exchange rate.
The result showed 200-117 which highlights discontent in the Party but with a relatively strong majority this has given her the support, at least in the short term to lead the Party forward. She did however admit that she wouldn’t be standing for the next general election due to take place in 2022.
Indeed, the vote showed that she now has more votes in favour compared to during her leadership campaign a couple of years ago.
Theresa May has now gone to attend the EU summit in Brussels with leaders expected to arrive at around lunchtime. The main agenda point will clearly be that of Brexit and EU council President Donald Tusk has suggested that the EU are prepared to discuss further terms and perhaps adopt a different conclusion.
Brexit latest news
One of the main sticking points of the current deal on offer is that of the Irish backstop arrangement, which the DUP will categorically not support. Unless something can be changed I think the discussions will remain at a stalemate.
The real problem for the future of Brexit is that the House of Commons appear to be opposed to this deal and seem likely to oppose any future deals, which puts the Brexit in doubt.
With just over three months to agree terms the UK is running out of time to get things organised and I think the UK may even in time consider revoking Article 50 if they are unable to get the Brexit deal through Parliament before the end of March.
Theresa May’s survival is good news for the Pound to Euro forecast
The good news for those looking to send money to Europe though is that as Theresa May has managed to survive the no confidence vote this has helped the Pound gain some support after its collapse when Theresa May delayed the Brexit vote earlier this week.
In the short term I think we could see some further respite for the Pound as the European Central Bank are due to meet later on today. If the tone at the press conference is rather dovish I think we could see further gains for the Pound vs the Euro.
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