Last night Theresa May invited 100 business leaders to Downing Street as well as providing Labour MPs with a briefing. The Prime Minister knows she has a major job on her hands to get her deal through Parliament on the 11th December at the vote.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR3.13%€7,020
GBPUSD3.63%$9,240
GBPAUD3.48%$11,620
Theresa May begins campaign for Brexit deal

Mrs May is going to need cross party support as several members of her own party including the DUP - who provide her with a majority - will not back her deal. However the PM is going to pull on the heart strings and challenge MPs, saying that if they vote down her deal they will forcing the UK to head along a no deal Brexit path.

The likely outcome to a no deal vote is Theresa May resigning or a vote of no confidence, with the huge potential for this to be followed on with a general election. Arguably a no deal vote could be the end of the Conservatives in power and those playing politics may recognise this when they come to vote.

In her speech yesterday, the PM pointed out that the EU would not accept a deal under any other terms, so going back to the negotiating table would not make any difference other than increasing the amount of uncertainty. Sterling finished yesterday against the US dollar and euro where the rate started, with the markets just treading water with a definite pricing in of a worst case scenario taking effect.

The boost we saw on the announcement of an initial deal where the GBP/EUR rate climbed to 1.155 feels a long time ago. Until the 12th December, or until the time we see an indication that the deal will pass, sterling is unlikely to find much support.

Download our monthly currency forecast

Download here

News

Read more articles

 

Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.