Yesterday’s EU summit has not gone well for Theresa May. Last night EU leaders rejected her chequers plan, causing the Pound fall as you can see from the chart below:
To be honest, this was the only likely outcome. May was humiliated as the plan was dismissed, with the EU simply saying she has to come up with a new proposal, as they have done before. Donald Tusk went as far as mocking her in a photograph on Instagram with a picture of him offering her cake, but with the caption ‘sorry, no cherries’. Highly diplomatic….
Nobody expected the EU to agree to the chequers plan, but most expected them to be a little more engaging than they have been. This tough stance by the EU is not helpful to either side, and only increases the chance of these negotiations falling apart completely, resulting in a ‘No Deal’ scenario that would be a disaster for the EU as well as the UK, and of course for Sterling
Theresa May has been trying to find a middle ground, but there is now a deadlock. The EU won’t accept chequers, but the UK won’t accept Northern Ireland remaining in the customs union as the EU wants, and without the EU making any concessions, it’s looking more and more likely the UK could leave with No Deal.
Theresa May to make an announcement shortly
*** Theresa May is due to make an announcement regarding Brexit at 13:45pm, and this is also causing the Pound to fall *** We think she will announce that she will not change tack with Brexit. We are edging ever closer to leaving with ‘No Deal.’
Sterling has fallen as a result, and this is largely due to the fact that the EU stubbornness leaves May in a perilous position politically. I’m not sure she’ll survive as PM for long. Brexiteers now have the upper hand and could force her out and I think we’ll see people manoeuvring, starting at the party conference later this month. If she does go, then it creates even more uncertainty for the UK, which would harm Sterling and weaken the Pound significantly.
Need to make a transfer? Worried about exchange rates?
If you need to convert Sterling to Euros or any other currency, then these developments should be a serious concern. If no Brexit deal can be agreed, then the Pound could crash in value. There are ways in which we can help those that need to convert currency. For example we offer a ‘Forward Contract’ that allows you to freeze the current rate for up to 2 years. This is a great solution for those that are buying property overseas and want to be protected from a drop in the value of the Pound.
If have a currency transfer to make, then get in touch today to speak to an expert . We can provide you with a free quote and explain all your options, to help you make the most of your currency.