The pound to euro rate slumps as Theresa May seems to be destined for failure again when she puts her deal before the House of Commons in early May. Her deal has failed on three occasions to go through and it seems there is little change from the deal fro her last attempt to have it passed through.
Strong opposition to May’s Brexit bill impacts pound to euro rate
Figureheads from both within and outside the Tory party have stated they are in opposition to the current deal which does not bode well for the next vote.
When GBP/EUR reached the 1.17 level recently I was unconvinced the rally would last. I was of the opinion the rise was false. It was based on getting a potential deal through before the European elections held on 23rd May.
I was of the opinion there was little chance of this and I feel the same about the PM getting a deal through in early June. May has had more than two years to negotiate and even at this stage it seems we are a long way from a deal.
Unshakeable Brexit deadlock rocks pound to euro rate
Brussels stance remains unchanged, the European Deputy spokesman recently stated there would be no concessions made and the deal on the table will remain the same.
The breakdown in talks between Labour and the Conservatives has not helped the pound and GBP/EUR now sits in the 1.14s. The recent movements show that the pound to euro rate is being dictated by Brexit news.
If you look at EUR/USD it is close to a yearly low as the Eurozone economy struggles and investors seek to put their funds into safe haven currencies such as the greenback in times of global economic uncertainty.
I am of the opinion the pound will remain fragile until we have firm news on Brexit and now again we are below the 1.15 resistance point that pre March held strong for 18 months. Every time it was breached, the rates quickly retracted. It will be interesting to see if it holds up moving forward.
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