The pound to euro exchange rate opened at €1.1668 today, according to Bloomberg. At the time of writing, it had dropped slightly to €1.1655. But, with a “crucial” week ahead for the UK regarding its impending exit from the European Union (EU), what is in-store for the pound? According to an expert, it could be Brexit news which could have the most impact on the exchange rate today.
Laura Parsons, currency analyst at TorFX, shared her thoughts with Express.co.uk.
She said: “Over the last few months, many weeks have been described as crucial for Brexit. This week is no exception.
“With the revised exit date approaching MPs are set to vote on the way forward.
“Ahead of all the drama the GBP/EUR exchange rate has been able to return to trading in the region of €1.167.”
However, while Brexit may be the factor most likely to influence how the pound fares today, the German IFO confidence figures may also have an impact.
Ms Parsons explained: “Brexit headlines will be the main pound-mover today, but the euro could also fluctuate in response to the German IFO confidence figures.
“A decline in sentiment could prove GBP/EUR supportive.”
Brexit is legally scheduled to take place this week, at 11pm UK time on March 29.
However, with MPs having voted against Theresa May’s Brexit deal twice, the government have been forced to seek an extension to the deadline.
Now, the Prime Minister has been granted an additional two weeks to find a solution to the matter.
If she puts the deal to Parliament this week and is supported by MPs, the date of Brexit will be pushed back to May 22, in order to give the time required to pass necessary legislation.
However, if it’s rejected for a third time, the UK will have to come up with an alternative idea by April 12, for EU leaders to consider.
European Council President Donald Tusk said: “The UK government will still have a choice between a deal, no deal, a long extension or revoking Article 50.
“The 12 April is a key date in terms of the UK deciding whether to hold European Parliament elections.
“If it has not decided to do so by then, the option of long extension will automatically become impossible.”
Published at Mon, 25 Mar 2019 09:14:00 +0000