Business Brexit

Tuesday 15 October 2019

Euro falls below 86p for first time since May 2017 as pound rallies

Theresa May
Theresa May
Donal O'Donovan

Donal O'Donovan

Sterling traded at its strongest level in almost two years versus the euro following Prime Minister Theresa May's promise to allow Parliament a vote to delay Brexit and block the prospects of a no-deal. The opposition Labour party, meanwhile, says it is in favour of a second Brexit referendum.

Euro/sterling traded yesterday below 86p for the first time since May 2017, a boost to Irish exporters into the UK market, still the most important for many sectors and for small and medium enterprises (SMEs).

"Sterling has now rallied more than 5pc since the start of the year giving further relief to Irish exporters; and although an extension to Article 50 still fails to provide clarity to an ultimate Brexit solution, the further reduction in the probabilities of a 'no-deal' should be enough to boost the undervalued pound over the coming weeks," said

Lee Evans, head of FX Trading & Strategy at Bank of Ireland Global Markets.

Irish Independent

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