Its another important week for UK Prime Minister Theresa May and consequently her actions will have a direct impact on pound to euro exchange rates. At present mid market levels are 1.17 and the chances of breaching 1.18 are high if Theresa May manages to get her deal over the line.
Presently leading Brexiteers including Boris Johnson and Jacob Rees-Mogg are warning other MPs that another defeat for the Prime Minister will increase the chance of the UK not leaving the EU. Therefore numerous reports are suggesting that fearful Brexiteers are prepared to support the Prime Minister as long as the PM has the support from the DUP. However it’s certainly not all good news for the PM as she has been told that she has to quit between her deal being approved and the second stage of Brexit talks.
MPs to vote on alternative Brexit paths
This afternoon Theresa May will lose her power as she passes over the reigns to a cross party of MPs which will set the agenda. MPs will then vote on alternative paths which Brexit may take which will include a vote on another referendum, however the votes may be irrelevant if the PM manages to sway more conservatives to vote in her favour in fear.
Since the start of the year GBP/EUR mid market exchange rates have fluctuated between 1.1060 and 1.1774. When the chances of crashing out of the EU without a deal arises GBP/EUR falls to the lower levels and when a deal looks likely GBP/EUR rises to the higher levels. If the Prime Minister manages to have another vote this week then there is a chance that 1.18 will be breached and GPP/EUR rates will test 1.20. However, anything could happen in the upcoming days and keeping in regular contact with a professional within the industry whilst being in the position to trade is important.
If you are making a pound to euro transfer or even a euro to pound transfer, I would recommend getting in touch to discuss and devise a strategy.
In other news the UK is set to release their latest GDP numbers on Friday. Growth for the UK has been slow over the last couple of years because of Brexit. The numbers are expected to be released with no surprises therefore this could be a nonevent however clients trading should keep an eye on these numbers Friday morning.
If you would like to know more about how Brexit is affecting Pound Sterling exchange rates and how these factors could impact your currency exchange feel free to use the form below to get in touch.