Markets still hopeful of a Brexit Deal before the year is out.

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Markets still hopeful of a Brexit Deal before the year is out.

October 15, 2018

The pound hit a 3 ½ month high (1.1460 interbank level) last week as rumours circulated that a deal for Brexit could be struck ahead of the EU summit starting this Wednesday.

Brexit updte from our currency specialists!

This morning the pound has since dipped in strength due to the negotiations stalling yesterday between Dominic Raab (Secretary of State for the UK Exiting the European Union) and Michel Barnier (EUs chief Brexit negotiator). The hold up in negotiations is due to whether there will or won’t be a physical check at Irish borders. Despite the disappointment that a deal isn’t going to be done this week, the markets are still confident that a deal could be achieved before the year is out. This could see further opportunities for those selling pounds and buying euros before the end of 2018, and an ideal time to be ready to trade.

Every time a hurdle is agreed, or even a rumour of one, between the UK and EU over Brexit the pound has risen against the euro. Myles Birket, of Bespoke Fx says, 'I have been watching Brexit closely over the last few years and cannot see a huge change will happen at the time of Brexit, the main change will be immigration, which obviously doesn’t affect UK clients buying property in Europe. Further news focussing on any clarity of a Brexit deal or the divorce settlement from the EU summit, starting Wednesday, will be one of the main drivers for the pound’s strength this week.'

Over the last 3 months there has been a swing of 6% in the GBPEUR exchange rate. On an exchange of £350,000.00 this is a difference of an additional €22,750.00 buying at the high compared to the low.

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