More Brexit Mishap

19 October, 2018

Paul Newfield

The last couple of days has seen the Brussels summit, which was once seen as the deadline for a Brexit deal to be finalised; it was not to be! There is still no clear solution for the border issue between the Eire and Northern Ireland, which needs to be resolved before any deal is ratified. A deal still may be concluded at the December summit, although the delay in leaving the EU is now likely with some murmurings of a 2020 or even 2021 UK leaving of the EU, as there is a 21 month transitional period with minimal changes in this timeframe as it is.

This transition is looking likely to be extended further, with the EU citing that there “will be financial implications” if the extension goes ahead. These delays are not helping the beleaguered PM Theresa May and criticism of her is growing, the issue is she needs the support of parliament in any Brexit vote; should they vote against her the Brexit could actually be prevented! There was supposed to be a special summit coming up in November but Michel Barnier has insisted he and the EU need more time and so this meeting is unlikely now to happen.

So how did this affect the pound yesterday? Between the highs of 13:20 UTC and 15:40 UTC sterling lost nearly half a cent against the euro and ¾ cent against the USD. UK retail sales also came in quite a bit lower than expected also. With today being a quiet one on the data front it might be an idea to book in that currency as we are still only a cent off the highest it has been against the euro since June.

If you are looking to buy a property abroad next Spring and your completion is after the Brexit, we offer a wide range of currency transfer options, including forward contracts, that will give you far more control over what rate you can achieve in the future. Stay in touch with us and if you haven’t yet done so, do register with us for free on this website to get access to all our free news and updates surrounding Brexit and your property purchase abroad.