With the original 29th March departure date having been and gone, the two sides still appear no closer to reaching a mutually agreeable deal on Brexit.
Theresa May’s proposed withdrawal agreement has repeatedly failed to find sufficient parliamentary support, with the issue of the Irish border continuing to be a sticking point.
As any extension past the new 12th April deadline was made conditional on MPs approving May’s deal the Pound came under fresh pressure ahead of the weekend.
Markets were also disappointed by Parliament’s failure to approve any of the alternative proposals put forward in a series of indicative votes on Monday.
This state of parliamentary paralysis fostered a continued sense of uncertainty over the UK’s future relationship with the EU, leaving GBP exchange rates on the back foot.
Although a majority of MPs previously voted to reject the prospect of a no-deal Brexit the UK looks at increasing risk of crashing out of the EU without a deal.
As Jean-Claude Juncker, President of the European Commission, warned:
‘12 April is the ultimate deadline for the approval of the withdrawal agreement by the House of Commons. If it has not done so by then, no further short extension will be possible. After 12 April, we risk jeopardising the European parliament elections, and so threaten the functioning of the European Union.’
Although Theresa May reached out to the opposition Labour Party leader Jeremy Corbyn with the aim of securing cross-party support for a compromise deal this was not enough to ease market anxiety or support the Pound.
Unless Labour can secure sufficient concessions from May, such as continued membership of a customs union, Parliament may struggle to find any way forward on Brexit.
As political developments unfold, the Pound is likely to come under further pressure, barring a significant breakthrough.
However, while it remains impossible to call the ultimate outcome of the Brexit process at this stage you can still find some sense of certainty when it comes to any upcoming currency transfers.
In the face of such prolonged market turmoil one of the best tools at your disposal is a forward contract.
For a small deposit you can lock in the current exchange rate for up to two years in advance of your transfer, making sure that any deterioration in the Pound won’t eat into your profits.
If you’re worried about the impact that Brexit and the current atmosphere of uncertainty could have on any money you plan to move then give TorFX a call on +44 (0) 1736 335250 and talk through your options with one of our expert currency advisers.
Even though it can be hard to keep up with the latest twists and turns of the Brexit process it doesn’t have to be the same when it comes to your currency transfers.
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