Pound Euro rates – ECB interest rates and Brexit update

ECB interest rates and Brexit update

Pound improves against the Euro

The Pound has managed to remain firm against the Euro this week as it appears as though Boris Johnson is changing his tone towards a deal with the European Union.

Earlier on this week parliament voted to remove a no deal Brexit from the proceedings and this means it will be very difficult for Boris to deliver a no deal Brexit at the end of October.

This means that Boris will have to come up with some sort of alternative. In the meantime, parliament has been shut down until the middle of next month. Johnson’s government will be working behind the scenes in order to try and find a way to improve the current situation.

Also, earlier this week the opposition declined the opportunity to hold a General Election. Labour now appear to be waiting until after 31st October before agreeing to go to the polls.

The Prime Minister will be due to going to Brussels on 17th October and he has claimed ‘…I will strive to get an agreement in the national interest…this government will not delay Brexit any further.’

Problems ahead for the Euro?

Tomorrow afternoon the European Central Bank will be holding their latest monetary policy meeting. Rumours are increasing that the central bank may be planning an interest rate cut as well as further Quantitative Easing.

If this happens this could cause the Euro to come under a little bit of pressure so could we see the Pound improve during tomorrow afternoon against the Euro?

If you’re planning a currency transfer involving Euros then pay close attention to tomorrow’s ECB meeting. It will be interesting to see what happens with the subsequent press conference. Some analysts claim that the Euro could potentially improve tomorrow. The reason being could be that if the ECB do not take enough action then this could see the single currency improve against the Pound.

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