After months, even years of waiting, today was supposed to be the day when the UK left the European Union. However, as we have seen recently the UK now has been granted another extension until the end of January 2020.
General election campaigning to cause GBP/EUR volatility
With a general election now having been called for 12th December campaigning to win will be the main focus rather than Brexit. Indeed, it appears as though the negotiations with the European Union have been paused until after the election. However, that only leaves us with a few days until Christmas and then realistically just over a month to get a deal agreed. Therefore, what was a 3 month extension appears to be just around a month.
The general election was given the backing earlier this week with 438 votes for and just 20 against. This is Boris Johnson’s fourth attempt to have a general election since he gained power earlier this year. His mandate is to ‘get Brexit done’ and his plan is to increase his support in parliament in order to get a deal organised. This would make it easier for him to pass legislation and move things forward with the EU.
Eurozone economic data shows slight improvement
Turning the focus to the Eurozone and this morning third quarter GDP was published. This showed a small improvement to 0.2% for quarter on quarter. The expectation was for 0.1% so the data has helped the euro to stabilise vs the pound.
With All Saints Day tomorrow most of Europe will be closed so we could see some volatility for GBP/EUR exchange rates as the liquidity may be slightly reduced.
If you would like a free quote when buying or selling euros compared to using your own bank or another currency broker, then contact me directly and I look forward to hearing from you.