On Friday night, European Council President Donald Tusk released a statement following the announcement made by Prime Minster Theresa May. He claimed that the UK’s position during the discussion in Austria on Thursday was ‘surprisingly tough and in fact uncompromising. The Euro report below discusses the summit in Salzburg and the upcoming data releases for the EU towards the end of this week; the following table displays the range of GBPEUR exchange rates for the past 30 days showing the difference in Euro return you could have achieved when selling £200,000 during the high and low trading points.
|Currency Pair||% Change||Difference on £200,000|
He went on to suggest that the Chequers deal had indicated that the UK’s approach was moving in the right direction as it was aimed at reducing the negative effects of the Brexit on both the UK and the European Union.
He said ‘out of respect for the efforts of PM May, we will treat the Chequers plan as a step in the right direction’ but he has also claimed that the Chequers plan will not work. Meanwhile Theresa May has said that the only credible plan was that of Chequers unless another proposal is offered up.
With the EU summit meeting due to take place next month, Tusk wants to make sure that things progress with the discussions and that another special Brexit summit could take place in mid-November if things progress at next month’s meeting.
Meanwhile the Irish Prime Minister Leo Varadkar has said that he wants to ‘avoid a no deal Brexit but we are preparing for that'. Clearly the Irish leader also wants to make sure that the Irish border issue is resolved.
So far the EU and the UK have agreed on the need to have a legally binding backstop guaranteeing that there would be no hard border. However, Britain has so far rejected the EU’s proposal, which would keep Northern Ireland in the bloc’s customs union whilst the rest of the UK leaves.
There is little data due out until towards the end of the week for the Euro so the market is likely to be dominated by the ongoing Brexit news. However, on Thursday the Eurozone will release the latest set of Consumer Confidence figures, which has been improving in recent months, so another positive release could see further Euro strength towards the end of the week.
On Friday we end the week with the latest Consumer Price Index data from the Eurozone. With inflation set to hit 2%, which is the ECB’s target level, this could encourage the Central Bank to look at rising rates sooner than the current expectations of late 2019. Therefore, if you’re considering buying Euros it may be worth getting this organised early this week.
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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