industry

Pound euro exchange rate: GBP unsteady as Theresa May prepares to sell deal to Parliament


Sterling remains under pressure this morning despite EU member states agreeing to rubber stamp Theresa May’s UK withdrawal agreement at a weekend summit yesterday. The agreement, which Mrs May said was “right for the whole of the UK”, is set to be presented for Parliamentary approval in December. Speaking about the agreement, the head of the European Commission, Jean-Claude Juncker stated that anyone in Britain thinking the EU may offer better terms will be “disappointed” as this was the “only deal” on offer. Many MPs are unhappy with the backstop plan, which involves a temporary customs union, which will essentially keep part of the UK within the EU customs union on a temporary basis.

POUND LIVE: LATEST GBP STERLING MOVEMENT HERE

The Democratic Unionist Party (DUP) has said they cannot support Mrs May’s current deal, as it treats Northern Ireland differently from the rest of the UK.

Leader Arlene Foster said the agreement “goes against everything” the DUP had been promised.

Nigel Dodds, deputy leader of the DUP added: “Our party wants a good deal for the United Kingdom, a deal which delivers upon the referendum result and a deal which ensures that Northern Ireland leaves with the rest of the UK.”

The end of last week saw the Eurozone release some worse-than-expected PMI figures, which showed that private sector growth in the bloc had hit a four-year low.

Further disappointing figures from Europe have been released this morning, with Germany’s IFO business climate index for November falling from 102.9 to 102.0, despite a predicted fall to only 102.3.

Confirming euro traders’ fears of a Eurozone slowdown, business expectations for November also fell from 99.7 to 98.7, meaning pessimism has taken hold among German business leaders.

Looking ahead this week, if Mrs May is not able to convince Parliament that her Brexit deal is in fact the best deal available, it will essentially take Britain “back to square one”.

The EU remains adamant there is no other option other than a no-deal Brexit if MPs reject the deal presented to them.



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