Pound to Euro exchange rates have rallied to reach 1.13, the highest levels since June. We have now seen the pound strengthen from 1.06 in mid August, a move of 6.5%.
Sterling exchange rates shave rallied following attempts to block PM Boris Johnson taking the UK out of the European Union on the 31st October. Today we have also seen the beginning of the Supreme Court case against the PM suspending parliament. In its first day the Supreme Court has been told how the Prime Minister sought to suspend parliament to avoid the risk of MP’s “frustrating or damaging” his Brexit plans.
This is a three day hearing with many suggesting the PM will have no choice but to resign if the shutdown is to be found as unlawful.
GBP/EUR on the rise, will it continue?
As the market continues to digest the recent on-goings in parliament the likelihood of a ‘no-deal’ Brexit on the 31st October appears to be reducing.
Following yesterdays no show at the planned press conference with Luxembourg’s prime minister, Xavier Bettel, it has been rumoured that the PM will pursue his case of a solution to the Irish backstop at the United Nations next week. Mr Johnson was said to have been “cautiously optimistic” about reaching a deal. This came following extensive talks with European Commission President Jean-Claude Juncker. This was also in Luxembourg.
This sense of increased optimism for a potential deal has leant further support to the pound. Something that I believe could well continue. I personally don’t believe we will leave without a deal, whether he can get something over the line in time for the 31st October remains to be seen, but the the removal of a ‘no-deal’ can only be good for the pound.
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