Many from within the financial markets are expecting to see some potentially large price changes over the next few weeks, as we’re likely to understand the next steps in the Brexit process during this time.
Last month the UK’s Prime Minister, Theresa May cancelled the vote on her Brexit deal in Parliament as she expected to lose quite dramatically. This was done just before the vote was expected to take place so the markets aren’t likely to rule out the chances of this happening once again even though just yesterday May confirmed the vote will take place next week. It’s since been confirmed that the vote will take place on the 15th and I think the outcome could result in movement for the GBP/EUR rate.
MPs return from their recess break today too and as of Wednesday the Brexit will be discussed in the House of Commons. Market commentators and the bookies are predicting that the chance of a no-deal Brexit has increased and my personal opinion is that we could see the pound to euro rate drop to new annual lows below the 1.10 mark if these predictions materialise.
Brexit related updates have been thin recently so the return of MPs, along with next Tuesday’s vote has the markets waiting for the next impetus for market movement.
Aside from the vote, next week I think that Friday could be busy for the Pound as at 9:30am there will be a number of data releases due out. These include Trade Balance figures and Industrial and Manufacturing figures. Although Brexit is the main driver of the pound to euro rate, any shocks from the data released could result in GBP/EUR movement.
Pound to euro forecast: French protests spreading to other countries
Meanwhile in Europe the protests over in France continue and appear to be spreading into some other countries. This holds the potential to negatively impact the Euro, especially if the issues begin to take their toll on the economies of the countries involved.
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