We’re now just 23 days away from the UK’s scheduled departure from the European Union, should the exit actually take place that is. At the moment the currency markets appear to be adopting a wait and see approach. The pound to euro exchange rate continues to gently slide with current interbank exchange rates sitting at 1.1142. Although the 31st is the expected date for the Brexit, it could be the 19th of this month that’s more important and when we could see sterling exchange rate volatility.
Sterling remains low as fears of no-deal persist
At present the laws in place ensure that if the UK government hasn’t got a deal in place by the 19th Boris Johnson will have to request an extension to Brexit from the EU. Up until now we have seen boosts to sterling’s value whenever talk of extensions or deals being stuck have been announced. On the other hand, it’s talk of a no-deal or adverse deals for the UK that have resulted in falls for the pound’s value, so those of our readers with upcoming sterling currency requirements should be aware of this.
Next Brexit extension expected to last 3 months
Markets expectations suggest the extension, should it take place would be until the 31st of January which would be shorter (3-months) than the previous extension of 6-months. Over the weekend French president Emmanuel Macron said that an EU response to the UK proposed Brexit plans could be announced by the weekend, so this could also result in movement for sterling if an announcement is made.
UK manufacturing and production figures released along with GDP figures on Thursday
The busiest time for UK based economic data releases this week is likely to be Thursday morning around 9.30am when manufacturing and industrial production figures will be released along with GDP figures which cover economic output. The governor of the Bank of England, Mark Carney will also be speaking shortly afterwards so do feel free to register your interest if you wish to be kept updated regarding market spikes.
If you have currency requirement or would like to know more about factors influencing GBP/EUR rates, feel free to contact one of our currency specialists using the form below.