Pound euro exchange rate: GBP/EUR steadies as doubts haunt Brexit delay vote
Today, meanwhile, will see a vote on the extension of Article 50 – until 30 June – which is generally expected to successfully pass through Parliament.
This is conditional on whether MPs will back Mrs May’s withdrawal agreement on 20 March, and if this is voted down the delay could be longer.
Sterling rocketed to a 21-month high against the euro on the result of the vote to avoid a no deal Brexit.
However, with creeping doubts emerging about the non-binding aspect of yesterday’s vote, the prospect of a no-deal continues to haunt markets.
Commons Leaders Andrea Leadsom further clarified today’s concerns, saying: “What we are seeking to do today is to get the will of Parliament on what it does want… [However] the EU may well have ideas of their own either to refuse or indeed to put conditions on it. So by no means is any option off the table at present.”
The euro, meanwhile, is rangebound against Sterling today following the publication of the German year-on-year Harmonised Index of Consumer Prices figures for February, which held steady at 1.7 percent.
Meanwhile, the monthly German CPI figures for February came in weaker-than-expected at 0.4 percent, leaving some euro investors unimpressed.
With a lack of other significant Eurozone economic data, the euro is likely to remain sensitive to political developments, with many traders in the single currency once again focusing on Brexit developments.
The GBP/EUR exchange rate is likely to be driven by speculation ahead of today’s vote, and, later on, with any signs of a delay to Brexit being supported by the House of Commons, the pound could begin to climb again.
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