Today Theresa May will provide a update to the House of Commons with regards to how her conversations have gone with EU members at the end of last week. It’s thought that Mrs May is going to suggest there has been progress and the two sides are close to starting the negotiating of a trade deal.
Previously the EU has been holding out for the UK to pay a “divorce bill”. It is rumoured they wanted this to be somewhere around £60 billion. However, the UK are thought to have offered around the £20 billion mark to start the discussions.
UK business leaders write letter to Brexit secretary
The Institute of Directors and the CBI (Confederation of British Industry) have drafted a letter to send to Brexit Secretary David Davis, voicing their concerns about the UK’s current predicament.
Whilst it’s clear that the UK Government want the same outcome as the business leaders the level of concern has been ramped up. The letter points that if there isn’t a clear transition deal in place then the UK could risk losing jobs and investment. The obvious main concern for businesses is a “no deal” Brexit, with the rhetoric for that seems to be getting stronger. Whilst from the stance of negotiation techniques having to get a deal undermines the UK’s position, as the deadline looms leaders will no doubt start to get more nervous.
This week the GBP/EUR exchange rate has started on the front foot with the rate back above 1.12. This week is a data fuelled week with several releases every day. GDP data for the UK will be released on Wednesday, with the European Central Bank set to deliver their latest Interest Rate Decision. There isn’t expected to be a change in interest rates for the EU but there could be a change to the economic policy, with a reduction in the amount of monetary stimulus. If you’re looking to purchase Euros with Pounds this week, I would consider doing so before Thursday.