Pound plummets against euro and as May outlines future EU ties in Brexit speech
THE pound fell against the euro following Theresa May’s landmark Brexit speech earlier today in which she laid out her plans for the future relationship between the UK and the European Union.
Currently the pound is 0.38 percent down against the euro at 1.1182.
The dollar’s reaction has been very tumultuous and it's currently up by 0.09 percent at 1.3785.
The US attention is more drawn to the tariffs President Trump has implemented on importing steel and aluminum.
The market reaction suggests people were not infused with confidence that a transition deal with the EU on March 23 at the European summit is assured.
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David Lamb, head of dealing at FEXCO Corporate Payments, said: “Despite the Prime Minister’s best efforts, at times her speech sounded more wishlist than line in the sand.
“Coming so soon after the publication of the EU’s draft of the Withdrawal Agreement, the British riposte confirmed the gap between the two sides’ negotiating positions is as big as ever.
“It also revealed the tightrope the government is having to walk on the question of Northern Ireland. Mrs May insisted there would be no hard border between the UK and Ireland, while at the same time seeking to reassure Ulster Unionists that the province would never have anything less than full alignment with mainland Britain.
“Achieving those two apparently contradictory goals will be an enormous challenge.”
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Michel Barnier, EU's chief negotiator reacted positively to the speech and said: “I welcome PM Theresa May's speech. Clarity about UK leaving Single Market and Customs Union and recognition of trade-offs will inform EUCO guidelines regarding a future FTA.”
Outlining her plans for future ties with the EU, Mrs May said: ”Life is going to be different. In certain ways, our right to each other's markets is going to be different to what it is now."
Mrs May also said negotiations are getting closer “to an agreement” on terms of an implementation period, however, this is in contrast to Mr Barnier saying just this week that this is not a given.
