- The exchange rate has dipped to €1.134
- Brexit negotiations are reportedly 95% complete
- The euro is also experiencing its own problems because of Italy’s budget
The British pound suffered from minor losses to the euro as trade opened this week. While these losses are minimal, it is at its lowest in over two weeks, according to the Express. Sterling is now worth €1.134 and it is expected to go down further.
The dip happened ahead of Theresa May’s address to the House of Commons on Monday. Mrs May noted that “95% of the withdrawal” arrangements are done but one “sticking point” remains and this concerns the hard border in Ireland should the UK agree to what the European Union wants.
Mrs May also noted that speculations about her wanting to extend the transition period are untrue. She stated: “I do not want to extend the implementation period” adding that “any extension is undesirable”. Just last week, the Prime Minister received flak from pro-Brexit MPs for reportedly considering an extension.
The Prime Minister also said that the choices given by the European Union are unacceptable and that the United Kingdom “could not be kept in either arrangement indefinitely”. Reports from London on Monday say that the pound could go up against the euro if Mrs May is able to reassure the House of Commons and the British people. Pro-Brexit MPs are hopeful that the country will get a good deal noting that jitters are understandable at this point.
The euro is having its own problems as well, as Italy’s budget proposal to the European Commission has brought uncertainty to the EU. Apart from Italy and Mrs May’s Commons speech, Britain is waiting for feedback from the Confederation of British Industry. According to insiders, the CBI is set to report negative industrial orders.
