Within the past week a number of prominent leaders from within the European Union have issued warnings regarding the UK’s planned EU separation (Brexit).
Last week it was President of the European Council, Donald Tusk whereas over the weekend it was French Prime Minister, Francois Hollande. Both have outlined a ‘Brexit or no Brexit’ stance whereby the UK will not be able to retain its current relationship with the EU, and lose its current access to the European Single Market.
Francois Hollande issued a statement suggesting that the UK’s Brexit must not put the EU’s free movement of people at risk, and this isn’t the first time that he’s outlined this stance regarding the Brexit.
Many within the marketplace hoping for Sterling strength, or at least the beginning of a comeback won’t welcome these types of comments as generally any talk of a long drawn our Brexit process has been GBP positive, whereas any talk of a ‘Hard Brexit’ has weakened the Pounds value.
Earlier today UK released Inflation Figures which came out higher than expected. I think we can expect to see the UK Inflation gain quite heavily due to the Pounds fall this year, and it will be interesting to see how the Bank of England’s Monetary Policy Committee decide to deal with that issue.
That being said, GBP EUR exchange rates have found some comfort and are edging closer to 1.12 for the first time in nearly 2 weeks. Those looking to buy Euros may want to consider making the most of these spikes. Further Brexit updates could cause further slides for Sterling.