[ad_1]
Irish border to be discussed
The price of the pound to the euro rose last week to a record high of 1.1289 this morning between GBP and EUR.
British Prime Minister Boris Johnson will visit Luxembourg for lunch with European Commission President Jean-Claude Juncker as part of the first meeting since Boris Johnson became Prime Minister. The meeting should focus on how the Irish border conundrum might work in practice.
The pound sterling is rising in favor of renewed optimism about the conclusion of an agreement between Britain and the EU. It has been reported that the prime minister will not ask for another extension of the October 31 deadline. With newspaper ads titled "Get ready for Brexit" and signs appearing on the main roads for "Check your papers" because things could change on October 31, the reality is that the next 6 weeks could be a very volatile period for GBP / EUR exchange rates. Those with pending needs, whether buying euros or selling euros, would be well advised to consider their options, as any breakthrough or lack could result in a big change for GBP / EUR. The Prime Minister hopes to secure an agreement at the next EU summit on 17 and 18 October. The high volatility between GBP and EUR is expected based on the results of this important meeting.
It should also be noted that tomorrow's Supreme Court hearing will decide whether the prorogation of Parliament is in fact legal. It follows the first case before the English High Court which found it lawful although the Scottish courts held that prorogation was unlawful. Any change in the situation could lead to the return of Parliament and potentially exert additional pressure if the court were to rule against the government.
Another cycle of quantitative easing
The euro is also under pressure after the European Central Bank (ECB) cut the deposit rate last week and reintroduced a new wave of quantitative easing as part of what the so – called the QE2. The ECB is expected to inject around 20 billion euros into the economy in order to boost growth and inflation in order to fight the recession. The policy contrasts sharply with the British side where the Bank of England has openly talked about rising interest rates in the future.
If you would like to know more or make a future currency transfer between the GBP / EUR pair, please contact us using the form below.
[ad_2]
Source link