• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / British Sterling / Brexit position to drive Sterling rates

Brexit position to drive Sterling rates

February 20, 2017 by Rob Lloyd

Brexit position to drive Sterling rates

So how long can the Pound maintain its current levels? It’s fair to say that markets have likely priced in Article 50 in March, but the real challenges for the UK now await at the negotiation table.

Government’s approach makes it hard for Sterling strength

The big concern for the UK is not the Brexit itself, but the type of Brexit that Theresa May has set out to achieve. It has been suggested that immigration control will be top of the Government’s priority list, a decision that could cost the UK access to the single market.

Furthermore, May has made clear that the UK will not accept a bad deal from the EU, and will look to remove itself entirely from the single market if the remaining members play hardball.

As it stands, a large number of remaining members are united in their position of preserving EU principals, and the wreckless approach from the UK Government is unlikely to raise spirits.

There are many potential outcomes to the UK’s exit from the EU, and very few offer a better deal currently in place. The better of the choices centres around a free trade agreement, similarly to CETA – The EU-Canadian deal. Whilst this option offers an alternative to the status quo and allows the UK to restrict free movement, such a deal could take years to negotiate from both sides.

Alternatives such as the Norway model (EEA membership), may allow the UK access to the single market but will remain governed by the ECJ (European Court of Justice).

If logic prevails, both sides will work together to achieve a deal that works for all.

In terms of Sterling strength. we may have to wait until negotiations take place before we make further forecasts, but in my view the Pound may have further to fall.

Filed Under: British Sterling Tagged With: Brexit, Pound Sterling weakness

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Rob Lloyd

Robert brings with him a wealth of knowledge on what is impacting exchange rates, especially around the subject of the EU Referendum and the implications for Sterling and Euro exchange rates.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy