Last night saw Theresa May lose her meaningful vote once again and this has led to uncertainty for the UK and indeed Sterling exchange rates.
Pound to Euro exchange rates
Yesterday morning we saw Sterling breach the 1.17 mark against the Euro and traders seemed to be filled with confidence that a deal for the UK could be on the horizon.
As the morning progressed Sterling then started to weaken and this was due to news that the Attorney General Geoffrey Cox had suggested that the new changes were not totally legally binding.
He then continued on to inform the House of Commons that they had a duty of care to the UK and to be very wary of voting down the deal, as although the new terms were not legally binding, if the EU did not act in good faith there were other options available to resolve the matter.
This didn’t seem to turn many heads in the right direction as news broke late last night that Prime Minister May had lost the vote by a margin of 149, suggesting she is still a very long way away from getting her Brexit deal approved.
No deal Brexit vote expected today
Today now brings about a new vote on whether Parliament would like to leave the EU with ‘no deal’. It is unlikely that we will see this get voted through as this could be seen from the outside as very damaging to the economy, but you can never rule these things out!
Personally, unless it does start to look like we may see the no deal vote go through, I expect a slightly less volatile trading day, but the rest of the week will most likely be extremely volatile again.
The rest of the week is expected to be volatile
Tomorrow, assuming today’s vote does not go through will lead to a vote on whether or not Parliament will seek an extension to Article 50. Last night Prime Minister May suggested that if this is the route that we are to take then the EU will only approve this if we can suggest why we would like the extension. More time to negotiate may not wash with the EU so other options, including a second referendum will have to be debated. I think these kind of subjects could lead to great volatility for Pound to Euro exchange rates.
If you are in the position where you need to exchange Pounds into Euros or bring Euros back into Pounds then it is key that you have your eye on the market at all times. If you have a busy lifestyle and cannot afford to watch the market, which moves by the second, then it is key that you have a proactive broker with various options available to you.
Here at Pound Sterling Forecast we can not only help with information but we can facilitate the trade for you too, we have numerous contract options available for clients such as limit orders, forward contracts and stop losses, designed to help you in these testing times.
Feel free to fill in the form below and I will be happy to discuss your personal position in more detail.