Pound to Euro Forecast: General Election could weaken Sterling

Pound Euro rate hits 6 month high

How long are we looking at for a Brexit Extension?

EU members are due to meet today to discuss what length of Brexit extension to offer Britain. It is rumoured that the majority of member states favour a three month extension. Johnson has stated he would allow further time for Members of Parliament to debate the deal if they agreed to a general election on 12th December.

Boris has said in the event of a delay until January he will call an election, this may not come to fruition however as it is unlikely to get enough MPs to back an election.

Will there be a general election before Christmas?

Labour Leader Jeremy Corbyn wants a no deal taken off the table before agreeing to an election, the problem you then create is that a no deal scenario is the only ammunition for negotiations.

France would favour a shorter delay and have said a delay will only be approved if there is a purpose to that delay. Boris would also prefer a shorter delay until mid-November.

The lack of clarity surrounding Brexit and the potential of a general election does have the potential to weaken the Pound. Historically, a general election weakens the currency in question due to the political instability. Short term Euro buyers may wish to consider taking advantage of current levels while we still sit close to a six month high.

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