European leaders met in Salzburg yesterday, as well as the UK Prime Minister Theresa May to discuss Brexit and European immigration issues. The Euro report below provides an update on the latest Brexit developments and the economic data released today with the potential to move rates. The table below shows the range of GBPEUR exchange rates throughout the past week, highlighting the potential difference in Euro return when selling £200,000.00 during the high and low trading points.
|Currency Pair||% Change||Difference on £200,000|
The key comment yesterday came from European Council President Donald Tusk. He alluded that not enough progress had been made with the framework for economic co-operation and that it undermined the single market.
Next month however is expected to be a key month for the GBP/EUR exchange rate value – Donald Tusk made in clear that he expects maximum progress and results in the Brexit talks at next month’s October European Council – crunch time for Brexit.
This morning cabinet minister Chris Grayling has said there will be no deal with the EU on Brexit unless the EU softens its stance on the Irish Border.
The likelihood of a no deal scenario is still looming and if anything, poses more of the threat to the value of GBP than it does to the EUR. Currently, the UK and the EU seem to be at loggerheads – May’s plans are aimed at resolving the hard border between Northern Ireland and the Republic of Ireland are said by many EU leaders to implicate trade within the bloc.
Theresa May and European Leaders now have the Brussels summit on October 18th to overcome these issues, followed by a pencilled in date of the weekend of the 17th – 18th November to formalise such agreements. Between now and then I would expect huge volatility on both GBP and EUR exchange rates.
Today sees the latest set of Purchasing Managers Index data released from both France and Germany and the Eurozone as a whole. There has been little data over the last 24 hours for investors to get excited about, so if these figures are positive we could see the Euro retrieve some of the losses against Sterling yesterday, and could potentially extend its gains against the Dollar.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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