Pound euro exchange rate update: Sterling has BROKEN OUT and will ROCKET in 2018
The days of the pound’s Brexit slump has turned, leading to a former Treasury insider to proclaim sterling has “broken out” and will rocket in 2018.
Jim O'Neill: Sterling has BROKEN OUT and will ROCKET in 2018
Pound sterling dropped against the euro and dollar in the wake of Britain’s decision to leave the European Union on June 23, 2016.
The pound has marked a slight rise against the euro despite the tough-talking rhetoric from the European Union on a potential post-Brexit transitional deal.
Britain is being told in no uncertain terms to accept stricter trade terms on immigration and fishing rights, providing uncertainty for UK and European businesses.
I would not be surprised if we are heading back toward 1.50
However, speaking to Bloomberg, Jim O’Neil, a former UK commercial secretary to the Treasury, predicted pound sterling will thrive in 2018.
He said: “It looks to me as though the trend has turned.
“It looked to me early December that was the case, and again I remember you showed me a trade weighting chart and I said it’s not dropped further since the election.
Expert predicts pound will surge against euro in 2018
“The markets have somehow figured out something different is going on – arguably, we get a more gentle Brexit or something else – and it looks to me now that the pound has broken out.
“I would not be surprised if we are heading back toward 1.50.”
Sterling is up a thin 0.2 percent against the euro to 1.1267.
Whereas, the pound is down 0.08 percent against the dollar, albeit from relative nosebleed territory of 1.3783.
With the pound expected to rise as a ‘no deal’ Brexit looks less likely, it is being reported Michel Barnier has been given a number of revised “directives” that could potentially complicate trade talks with the UK, according to the Financial Times.
These new “directives” is for the extension of free movement rights and a special status to all EU citizens who arrive to live in the UK the day before the end of the transitional deal.
