Theresa May is currently in attendance at the EU Summit which is the first time the leaders have been together since the announcement of Article 50 being implemented at the end of March. May received a particularly militant reception with the main EU leaders sticking to the no talks before negotiations.
French Leader Francois Hollande was pleasant enough to suggest that May’s tone was different to previous statements. It would appear that the reality of the predicament the UK finds itself in is coming home and there is a lot left to do before the UK leave the EU.
High Court rules on MP vote
The High Court in the UK has been told it is very likely that MP’s will be given the chance to vote on the final settlement deal for Brexit which could be used as a block to much of the negotiations. Considering the Commons has a fierce opposition of Brexit and most of the MP’s were remain voters, it would not be surprising to see conflict on the final arrangement. Either way there will be a Brexit deal eventually announced and the next few years of negotiations are almost guaranteed to cause major uncertainty to the GBP/EUR rate.
The Eurozone is no saint
Mario Draghi this week made it clear that the current Quantitative Easing measures in Europe would not come to a sudden halt. The bond buying program in place from the ECB was expected to be completed at the end of March 2017, however Draghi has mentioned that there will not be a sudden stop to the easing so it’s likely to exceed this date.
There is also the Referendum coming up in the first week of December in Italy which if Prime Minister Matteo Renzi loses, he has said he will resign. This would create even more turmoil in what is already a mess in Italy.