EU and UK negotiators are reportedly involved in “intense technical discussions” as they aim to reach a deal ahead of this week’s EU summit. The summit may be the last opportunity for the UK and the EU to reach an agreement before the Brexit deadline on 31 October.
Throughout the Brexit process, the pound has been sensitive to the sentiment of the negotiations. It rose last week after the two parties agreed to resume talks. However, it then fell against both the US dollar and the Euro on Monday following suggestions that the EU was seeking further concessions.
As the Brexit deadline approaches, it seems likely that we will see more volatility in the currency markets.
Key Brexit milestones
There is potential for currency fluctuations at any time, but there may be increased activity around the following events:
17-18 October: EU summit in Brussels, the last scheduled meeting of EU leaders before the Brexit deadline.
19 October: historic Saturday sitting for UK Parliament to discuss Brexit. According to the Benn Act, the Prime Minister is obliged to request a Brexit delay on this date if an agreement has not been reached.
31 October: the date the UK is currently due to leave the EU, with or without a deal.
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