Pound to Euro exchange rate sits above the 1.10 benchmark: Could this change before the UK departs the EU?
The pound to euro exchange rate remains supported despite Brexit tensions rising to new levels between those politicians who with to remain in the European Union and the that wish to respect the result of the 2016 referendum. GBP to EUR exchange rates currently sit above 1.10 for the pair ahead of a politically heavy week.
Those with pending currency transfers to make in the next two months would be wise to plan around the expected UK departure date of 31st October 2019. This week will see focus on a number of court cases against the government to try and stop British Prime Minister Boris Johnson from proroguing parliament later in the weeks ahead. The pound is likely to see volatility depending on the outcome of these cases. GBP vs EUR exchange rates are also likely to see high volatility as the markets begin to price in the prospect on a general election in a people vs the parliament election. Elections are historically extremely difficult to predict and in these times, it would be almost impossible to call, despite the Conservative Party reportedly ahead in the polls. Those MP’s looking to vote against the government have been threatened with de-selection which means they would be expelled from the party and and not be able to stand as a Conservative at the next election.
Cross party rebels look to extend Article 50 deadline
This Tuesday in particular looks set for fireworks when cross party rebels, with the help of the speaker of the House of Commons John Bercow, will attempt to pass a motion to enable them to control the business of the House for the rest of the week. It has been reported that they will try to insist that the government seeks an extension to Article 50. The proposed extension is likely to suggest the reason for it to be granted would be for a general election to take place. The bill for the legislation which has already been drafted has been referred to as “the Rolls Royce of drafting”. Whether this bill is successful, it will likely determine the path of Brexit and the direction of the pound. This is potentially the last attempt by those that wish for Britain to remain in the European Union hence why the pound is likely to be so affected by this development.
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