Yesterday the Pound to Euro exchange rate climbed to its best levels in 6 months. This level was within half a cent from the best Pound to Euro rate in 15 months, making it a good time for Sterling sellers when recent trade levels are considered.
Brexit news positive for Pound to Euro exchange rate
The reason for the spike in Sterling’s value is due to the announcement that a Brexit text has been agreed upon by Prime Minister Theresa May and her EU counterparts. The upside movement so far has been limited as the arrangements need to be agreed upon by May’s Cabinet before being passed through Parliament. This morning there is a lot of talk about whether there will be any further resignations by Cabinet members that are unhappy with the proposed deal. I think that if any members do step down the gains for Sterling over the past 24 hours would most likely be wiped out.
There is also a chance that the Cabinet will reject the proposed Brexit deal and this could be another reason for a drop in the Pound to Euro exchange rate.
Cabinet meeting set for 2pm today
At 14.00 GMT today the UK Cabinet is expected to meet to discuss the future relationship between the UK and EU along with the draft withdrawal agreement. If talks go well and progress is made there is talk of the previously cancelled November EU Summit being re-instated around the 25th of this month. This could be another potential market mover as it would signal positive strides being made by May in her quest to appease everyone in what seems like an impossible task at the moment.
Positive economic data for the UK
The Pound may have also been helped by the strong wage growth data released yesterday, which showed a further rise in regular pay growth to a decade high of 3.2%. Economic data is playing second fiddle to Brexit updates at the moment but it’s worth knowing that there is October’s inflation data being released later today which could impact the Pound to Euro rate depending on the release.
Another key topic at the moment that could impact the Pound to Euro exchange rate is the Italian Budget. The Italian coalition Government is in disagreement with the EU regarding its budget allowance, and the pair appear to be at loggerheads as this issue has been rumbling on for a while now.
If you wish to be updated in the event of a major Pound to Euro movement, do feel free to send me a message. You can send me a message directly using the form below, to ask me any questions you may have about the Pound to Euro rate. I will respond to you personally.