Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Pound Sterling Forecast (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Pound to Euro Rises as Hopes of Brexit Trade Deal Increase

% of readers think this story is Fact. Add your two cents.


The pound to euro exchange rate rose more than 0.25 percent during yesterday’s trading as the media reported the UK and EU could reach a trade agreement as early as next week. It is understood that Chief Brexit Negotiator David Frost has told Prime Minister Boris Johnson that a “landing zone” could be agreed with the EU before Tuesday. Whilst the pound to euro exchange rate edged up, markets are cautious due to the lack of genuine insight into what is actually happening behind closed doors.

The official status of the UK and EU remains they are working constructively towards reaching an agreement but there are still big differences on the key issues of fisheries and the EU’s demand for a “level playing field”. As such, it is unlikely the pound to euro exchange rate will move far from its current trading range until further concrete information is provided.

Markets had targeted this Thursday’s EU Summit as a crucial date and the possibility of a deal being announced. However, as we’ve seen with so many deadlines, it appears this EU summit will pass without the UK and EU having a deal to put before the European leaders. In fact, whilst deadlines continue to be set and then missed, it is believed that the true deadline could as late as the 31st December. Of course, this leaves no time for the European Parliament to ratify a trade deal but if the UK and EU reach an agreement at this late stage, there isn’t a lawyer within the European Commission or UK government that would object to the UK and EU being creative with the legal text, enabling the time for the deal to be ratified and avoiding the so-called cliff-edge.

Instead, this Thursday’s meeting now looks like a point where EU leaders could review their negotiating mandate again, in order to edge closer to a compromise. Despite the EU’s fierce redlines, the EU has moulded its position many times since negotiations began. We have seen the EU shift from demanding the UK signs up to its state aid rules and policies to saying it would accept the UK’s own equivalent rules. We have also seen the EU ease its demands in regards to environmental and labour market rules. A deal will require compromise from both the UK and EU and with time fast running out, those compromises need to be made soon. The can cannot be kicked down the road anymore.

Where Next for the Pound to Euro Exchange Rate?

Whilst the pound to euro exchange rate has remained in relatively slim trading this past couple of months, markets are preparing for a big move in the coming weeks. If the UK and EU can reach a trade agreement then expect pound to euro to rally as confidence resumes in the UK economy. Pound to euro could quickly target 1.14-1.15 for the first time in months and move higher in December, particularly if the UK comes out of lockdown and Covid vaccines enter circulation.

On the other hand, a no-deal Brexit cannot be ruled out and it has often been said that Boris Johnson is one of the strongest voices in the room when it comes to compromising UK sovereignty to secure a free trade deal with the EU. A no-deal scenario would cause immediate panic and see pound to euro fall but when you look at the projected difference in GDP over 10 years, which is just 3 percent or 0.2 percent per annum (the government’s own forecast), is the prospect of a deal really worth the possible compromises that could have to be made? After all, Brexit has always been about making and abiding by our own laws and not being ruled by Brussels.

The days of a “hard” or “soft” Brexit have long passed as the UK relinquished any chance of a Norway type deal that would see the UK stay part of the EU’s Single Market. Instead, the UK simply wants the same deal that was originally offered to Theresa May but has now been withdrawn, the Canada style agreement, although the EU are no longer prepared to offer this. In the same way, EU leaders have continually criticised the UK’s “we’ll have our cake and eat it” approach, in these final weeks, ironically it is Emmanuel Macron and several other European leaders that feel they have a natural right to maintain fishing access in UK waters. It’s hard to see how Macron can keep a straight face.

In summary, we could see the UK and EU find common ground and reach an agreement over the coming weeks. There seems to be genuine efforts to find a fair balance on the EU’s level playing field demand and despite the political posturing around fisheries, would the UK and EU really squander the opportunity to sign a free trade agreement over something as economically small as fisheries?

Get in touch using the form below to discuss these matters in further detail, and the ways you can limit your exposure to changes in the currency market driven by these economic and political factors.

The post Pound to Euro Rises as Hopes of Brexit Trade Deal Increase appeared first on Pound Sterling Forecast.



Source: https://www.poundsterlingforecast.com/2020/11/pound-to-euro-rises-as-hopes-of-brexit-trade-deal-increase/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST


Order by Phone at 888-809-8385 or online at https://www.herbanomic.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...
Loading...

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

MOST RECENT
Load more ...

SignUp

Login

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.