GBP/EUR rate hits new 22 month high of 1.1766

GBP/EUR rate hits new 22 month high of 1.1766

Pound Sterling strength as May claims to have gained concessions on the Irish Border from Brussels

Theresa May will put forward her Brexit deal to Parliament today and there has been news she has secured legally binding changes to it at 11th hour talks with the EU in Strasbourg.

Mrs May stated changes to the Irish backstop could not become permanent. President of the European Commission, Jean Claude Junker seemed to confirm May’s claims and said that she had delivered what Parliament had asked her to do. He did however go on to warn that if the deal was not voted through there would be “no third chance”.

There were two forms of documentation that were agreed this week in Strasbourg. One of which is a joint legally binding instrument on the withdrawal agreement which the United Kingdom gains the right to start a formal dispute against the EU if it tried to keep Britain tied to the Irish backstop permanently.

The other document is a joint statement regarding the future relationship between the UK and the EU which commits to replacing the backstop before December 2020.

Attorney General, Geoffery Cox will give his view on the legality of the new changes and whether they can be constituted as binding.

The deal will be debated throughout the day and the voting is due to take place this evening.

The news caused Sterling to make considerable gains against the majority of major currencies. Although many believe the deal still falls short of their expectations. Although the probability of May’s deal being voted through have increased it is by no means a foregone conclusion.

What’s next for Brexit if the vote is lost in Parliament?

If the vote fails we will witness a vote the following day on whether Parliament will be willing to leave the EU with no deal. I think this is highly unlikely considering how vocal many MPs have been about their discontent with this potential scenario.

If this is the case, we will then see a third vote on whether or not there should be an extension to the Brexit deadline, which I think is the likely outcome.

Although this has been factored into the exchange somewhat already I still think we will witness further gains if this is the outcome of the voting.

If you are sitting on Euros it may be wise to get in touch with your broker. If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker if you wish to maximise your return. If you let me know the details of your trade I will endeavour to produce a free, no obligation trading strategy for you. If you have a trade to perform I will also happily provide a free quote.