GBP/EUR Brexit Special – Pound to Euro reaction to Brexit developments

Latest Brexit developments

Pound to Euro exchange rates have slipped 0.3% on the interbank rate following the weekend’s news which saw Boris Johnson’s deal fail to be passed, as MP’s voted for the Letwin amendment that forces Boris to seek an extension.

GBPEUR rates finished last week at 1.1579, and have been as low as 1.1545 today. Whilst we have not seen the move that many in the financial world were predicting so far, there are still plenty of pending developments ahead which may provide the news.

The market was seeking some certainty and clarity on the Brexit issue which was ultimately not forthcoming, once there is greater clarity of whether Boris’ deal will be passed or not, we could expect increased volatility.

Sterling is lower as there was some optimism that the deal would have been passed this weekend, the reduced chance of the deal going through has seen the pound lower this morning.

Will the deal be passed today?

The Withdrawal Bill will now be voted on again by parliament if the speaker John Bercow agrees, with Dominic Raab stating he believes the deal can now be passed. The passing of the Letwin amendment makes it possible more MP’s will now vote it in, although it might require a small ‘technical’ extension to pass.

In other events, there are reports in the press that Labour are preparing their own amendments which will seek a vote on a second confirmatory referendum of Boris’ deal. And the EU have received Boris’ letter requesting an extension although he has not signed it. There was an accompanying letter which indicated he did not wish for it to be accepted, although it is widely felt some extension will be necessary.

What does Brexit now mean?

the upshot now is we are still awaiting some final news on just what Brexit means, but this week could be the week when we finally understand what direction and shape Brexit will be taking next.

The GBPEUR interbank rate is expected to be under increasing interest once we have that news, as it has seen increased movement whenever there has been significant news on Brexit.

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