Sterling weakens against the Euro
The pound to euro exchange rate continues to fall after the EU cancelled weekend Brexit talks. The current GBP/EUR interbank exchange rate sits at 1.1215. The EU leaders delayed the talks as they claimed that Boris Johnson’s plans ‘do not provide a basis’ for a deal.
We are now just less than two weeks before the next EU summit. As of yet, a deal is still to be agreed between the two parties. Boris Johnson appears to want a change to the backstop but news from the EU is that the plans are not viable and they are insisting that the UK present different proposals. The European Union has said ‘we will meet again on Monday to give the UK another opportunity to present its proposals in detail.’ One EU diplomat went on to say, ‘we need to work out quickly whether there is the opportunity to close that gap.’
Clearly there is still a long way to go before a deal is agreed and with less than 4 weeks to go before the UK is due to leave the European Union, time is running out.
Will PM Boris Johnson request a Brexit extension?
There is still a very small chance of a no deal Brexit but with Johnson recently claiming that he will send a letter to the EU asking for a Brexit delay if no deal is agreed by 19th October then it is looking likely that we will see another extension.
With the Benn Act in place this effectively means that if a deal has not been signed off by parliament by 19th October then an extension will have to be requested by the government. Therefore, the chances of another extension look highs, which may support the pound to euro exchange rate.
The impact this is having on sterling is continued uncertainty and this is causing the pound to continue to struggle on against a number of major currencies including vs the euro. If you would like to learn more about factors influencing GBP/EUR rates or have an upcoming currency transfer, please feel free to contact me using the form below.