GBP/EUR Exchange Rate Flat ahead of Commons Brexit Vote
The Pound Euro (GBP/EUR) exchange rate is trading in a narrow range again this morning, with investors reluctant to shift their positions ahead of a key Brexit Vote later in the day.
At the time of writing the GBP/EUR exchange rate is virtually unchanged from its opening levels, but still remains around half a cent down from this week’s opening levels.
Pound (GBP) Exchange Rate Muted as Markets Await Showdown in Commons
The Pound Sterling (GBP) exchange rate is showing little sign of life this morning as markets await a key vote in the House of Commons later today.
MP’s are set to debate the government’s Brexit withdrawal bill for the second time today, after the House of Lords voted to amend the bill and send it back to the lower house on Monday.
The key point in contention is whether Parliament should be given a ‘meaningful vote’ should the government fail to reach a deal with the EU.
The government managed to narrowly pass the bill in a vote last week, after Theresa May gave assurances to rebel Tories that the government would listen to their concerns.
However with rebels branding the subsequent offer as a ‘slap in the face’ today’s vote could be a lot tighter, with a number of backbenchers threatening to vote against the government.
Should the bill be defeated in today’s vote it is likely that the Pound will plummet, with markets fearing it add further uncertainty to the whole Brexit process.
Euro (EUR) Exchange Rate Subdued as Markets Digest Euro Budget Plan
At the same time the Euro (EUR) exchange rate also remains flat this morning as markets pick over the new Eurozone reforms agreed to by France and Germany on Tuesday.
The most notable part of the agreement is the formation of a new Eurozone budget, which has been a key aim for French president Emmanuel Macron, since his election last year.
Macron suggests the budget will help to shore up the Eurozone and prevent another crisis like in 2010.
However much to the disappointment to EUR investors, the has been no agreement regarding the size and conditions of the budget just yet, with German Chancellor, Angela Merkel reluctant to commit to anything concrete as she faces increasing pressure back home.
GBP/EUR Exchange Rate Forecast: Will Rebound in UK Industrial Orders Lift Sterling?
Looking ahead, the Pound Euro (GBP/EUR) exchange rate may rally later this morning, with the publication of the Confederation of British Industry’s (CBI) latest orders figures.
Economists forecast that today’s data will reveal industrial orders have begun to show growth again this month after contracting sharply in May, with a rebound likely to reflect well on the Pound (GBP).
Meanwhile EUR investors will be awaiting Mario Draghi’s closing remarks at the European Central Bank (ECB) forum later this afternoon, with the Euro (EUR) likely to remain subdued, with the ECB president not expected to drop any major policy bombshells.