Will the Brexit actually happen?

Pound to US Dollar rates influenced by political uncertainty in the UK

Since December it has been clear that the problem with delivering Brexit is that it is in the hands of MPs who are in the main in favour of staying in the European Union.

The various votes during the last few months have all been to reject the various Brexit deals on offer and I am beginning to doubt whether or not the UK’s government will be able to deliver Brexit.

The previous end date has now passed and although the UK has been granted an extension until the end of October I cannot see what will change between now and then for Brexit to be concluded.

European Council President Donald Tusk has softened in his tone towards the UK suggesting that the UK should be allowed time rather than try and force things to a conclusion.

Every time that an extension is granted in my mind means that the likelihood of it taking place actually diminishes.

In terms of Sterling however the uncertainty continues to weigh heavily on the value of the currency.

Another six months of negotiations is resulting in further uncertainty for British business and this means that there is a lack of investment creating problems for the Pound.

However, since December the Pound has recovered by 7 cents and this has been caused by the rejections of Brexit by parliament.

The longer the talks continue then the less chance there is of Brexit actually happening.

Clearly the current plans have not been working and if Brexit is delivered in its current guise then this will not offer the solution as to what a huge number of people voted for originally.

The Tories have been attempting to work with Labour to try and come up with a plan but owing to the strong personalities I cannot see things working out together.

In the short term I think the Pound will continue to remain under pressure against the Euro but in the long term I think we could see the Pound making gains.

Having worked in the currency industry for 16 years I am confident of being able to help save you money when transferring currency compared to using your own bank so contact me directly for a free quote and I look forward to hearing from you.

Tom Holian