Sterling exchange rates have been hugely driven by Brexit and that has continued this week as we near the new cliff edge date of Friday. The EU today now starts their emergency meeting to discuss Brexit and decide whether they will offer an extension to the UK and what kind of conditions that will include. Today EU ministers meet in Luxembourg from 17:00 BST before all 27 nation leaders meet in Brussels to decide on whether to allow Britain to have another extension. Without the extension, the UK is scheduled to leave with a No-deal at 23:00 the day after tomorrow - meaning this is really the 11th hour.

Currency Pair		% Change (Month)	Difference on £200,000
GBP	EUR	2.4%	€5,750
GBP	USD	2.85%	$7,500
GBP	CAD	2.5%	CAD $8,650

German, Dutch, Irish and Luxembourg ministers all have suggested that a No-deal must be avoided, however the French have said that any extension must come with a string of assurances. Remembering that all 27 members must agree any extension to be granted, the PM again made a last-minute visit to the leaders of both Germany and France yesterday to urge them to grant an extension. All eyes are now on the EU and what they decide over the coming 36 hours.

Brexit helps boost manufacturing due to stock-pilling

Outside of Brexit, the economic health of the UK has been showing signs of improvements. The most recent Purchasing Managers Index (PMI) showed a sharp increase in activity within the manufacturing sector, however this is thought to have be caused by Brexit stockpiling.

Recently the UK minimum wage was also increased last week to £8.21 per hour for over 25s, which makes it one of the highest minimum wages amongst major industrialised countries.

UK economic data due today

Today we have a host of further data due to be released from the UK including: Manufacturing data, Industrial Productivity, Trade Balance figures and GDP figures. However, with the Brexit deadline currently set for Friday, the majority expect updates on Brexit to be the largest driver for sterling's value in the immediate future.

News

13th November 2019

Sterling boosted by UK unemployment data

Pound finds support after UK unemployment figures were released and Tories extend lead in the general election polls.

By Tom Holian

12th November 2019

Sterling spikes against the euro after Brexit Party announcement

Brexit Party announcement and UK GDP figures helps support sterling against major currencies.

By Royston Howell

11th November 2019

Sterling remains north of 1.16 against the Euro

UK general election: Sterling remains strong against the euro as the Conservatives look to extend their lead in the polls.

By Curtis Hinton

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