- Pound falls further against the Euro
- Scotland and Northern Ireland fight to remain in the EU
- UK parliament under pressure from EU members to trigger article 50
- New Prime Minister to be announced in October
- 19 Labour members resign
The news last Friday that the UK has voted to withdraw from the EU is only the beginning of potential challenges for the UK. Since the results were broadcasted and David Cameron announced he would be resigning in October, a number of questions have since crept up which could add further fuel to the fire.
The results have caused an outrage in parliament, with over 350 members in support of a Remain within the EU, a number of key members from the Labour party have pulled the plug on Corbyn’s campaign after calls for him to resign.
On the other side of the pound, both Scotland and Northern Ireland, predominantly remain, are in discussions with EU officials over their options to remain in the Bloc, which could lead to another Scottish Referendum and thus, a break from the UK.
GBP/EUR exchange rates to weaken further?
With the above in mind, the potential for Sterling to weaken looks possible and this is before we even discuss the options open to the UK during re-negotiations.
A number of key EU members, German Finance Minister Wolfgang Schauble and French President François Hollande have warned the UK that a vote to Leave would be negative, leading to less favourable negotiation terms. Although some have taken the opposite approach, Angela Merkel has asked for calm negotiations and further unity within Europe.
How all of this will impact the British economy is yet to be seen, stock markets are down and the FTSE 250 is yet to recover from last week’s turnout, future economic releases will be the tell-tale indicators over the coming months.
For those that need to buy Euros, you may want to consider cutting your losses as GBPEUR rates have already fallen 2 cents today.
