Boris Johnson’s Government suffers first defeat in Brexit vote: What could this mean for GBP/EUR exchange rates?
Brexit is taking new twists and turns, as the market learns of fresh developments in parliament, as the various factions seek to establish some kind of order and direction. The British parliament reconvened after the summer recess with increasing expectations that following Boris Johnson’s proroguing of parliament, this week would be the one-off opportunity ahead to block no-deal.
Overnight, John Bercow has allowed the debate on a ruling, which if voted through could see the government forced to ask for an extension of Article 50. There is a wish to ensure Boris requests an extension to December, if the government cannot get a new deal by 19th October.
In other news to drive GBP/EUR rates, Boris lost his majority in parliament as Philip Lee, the MP for Bracknell, defected to the Liberal Democrats. Such a loss makes it more trickier for Boris ahead, to go through with his plans.
A key feature ahead, would be the possibility of a General Election, which could potentially see increased volatility for the pound. There is an expectation that sterling may lose value, according to its previous behaviour, which would see it lose value in the run up to a General Election. The result too, would have the potential to influence sterling rates, depending on what the outcome was.
What is happening to the Pound to Euro exchange rate?
The pound to euro rate has been riding an ever-changing wave, as the uncertainty around Brexit rises and falls, leading to movements on the pound. The euro has also lost some ground, as investors debate the possibility of action by the ECB (European Central Bank), at its meeting later this month.
This week could be a crucial one for GBP/EUR exchange rates, as investors weigh up what lies ahead for the pound and strives to better understand the market and Brexit. Our service is designed to assist clients in the timing and planning of a currency exchange, to help make a more informed decision. For more information on guidance in the currency market, during this potentially important week on Brexit, please do fill in the form and we will be in touch to discuss further.