Four senior conservatives have reportedly handed Prime Minister Theresa May a route map calling on her to speed up the Brexit.
During this month rumours have increased that the UK is gearing up to start the negotiations to leave the European Union early next year. According to Foreign Minister Boris Johnson on a recent trip to the US he stated that the UK is looking at triggering Article 50 in early 2017.
As yet Theresa May has made no official comment as to when this may occur and until we get any official statement then I expect Sterling to remain under pressure caused by the uncertainty.
Since the Brexit vote Sterling has fallen by as much as 17 cents vs the Euro and whilst the indecisiveness carries on then I think Sterling Euro rates will struggle to make gains.
Indeed, yesterday’s UK GDP figures for the second quarter were revised upwards from 0.6% to 0.7% and typically this would provide the Pound with some support but it did little to impact GBPEUR rates.
It remains clear that until we have some sense of what happens next with our relationship between us and the European Union then the Pound will find it difficult to break higher.
With Deutsche Bank having been fined US$14bn for the mis-selling of mortgage backed securities in the run up to the financial crisis this could potentially weaken the Euro. However, the CEO has reassured the staff and it looks as though a deal could be struck for a lot less possibly just US$5.4bn. There was a roller coaster for their share price on Friday but it ended up finishing up around 14%.
There are a number of data releases due to come out on Wednesday for the Eurozone including Services as well as Retail Sales data but like with the UK the Eurozone appears to have fended well since the Brexit vote so any further positive news mid-week could strengthen the Euro and challenge the recent 3 year lows for GBPEUR rates.
If you’re in the process of buying a property in Europe and are worried about what may happen to Sterling vs Euro exchange rates over the next few weeks it may be worth considering a forward contract which allows you to fix an exchange rate for a future date for a small deposit.
To find out more and get a free quote to exchange currency at more competitive exchange rates than using your own bank then email me directly or fill in the form below and I look forward to hearing from you.
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