Punters are starting to back in numbers the prospect of the Pound slumping to parity against the Euro after it traded as low as 1.103 on Thursday morning.
The Euro marked its 20th birthday this week clouded by uncertainty, it has never overtaken the Pound in value since it was introduced in 1999, however it did reach a high of 0.906p on Thursday morning as the markets reacted to the release of the latest manufacturing data from the UK.
We have reacted by slicing the odds on Pound/Euro parity happening before the end of 2019 into 8/1 from 12/1 after a spike in bets, as the scheduled Brexit date of March 29th looms large despite no deal being ratified by British MPs.
Theresa May faces a vote in Parliament this month on the withdrawal agreement she struck with EU negotiators, however she is struggling to attract enough support from across the house for the vote to pass.
Economists have warned that the subsequent prospect of a ‘No Deal’ Brexit will only increase the possibility of the Pound to Euro exchange rate trading at 1.0 by the end of the first quarter of 2019.
The uncertain political outlook in the UK also makes the Prime Minister a hot 1/3 shot to be replaced during the year, while a UK General Election before the end of the year has been backed at odds as low as Even money.
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*Prices correct at time of publication