Prime Minister Theresa May will trigger Article 50 on the 29th March signalling the start of the two-year negotiations for Britain to leave the EU. Mrs May announced all the way back in October that the end of March is the target and following the Queens Royal Assent last week, it’s now to become a reality. Whilst the news didn’t come as much of a shock, Sterling did lose ground against the Dollar and Euro towards the close of business yesterday. The Prime Minister will provide written notification to the EU in the next few days, which is expected to be less than 2 sides of paper.
This morning the Consumer Price Index will be released for February which is expected to rise above the 2.0% target mark. Mark Carney will then be speaking following the release. Last week at the Bank of England Monetary Policy meeting the BoE Governor suggested a rise in Inflation would force the Bank to consider an interest rate hike and he could reiterate that today, creating a boost for Sterling.
Mrs May was in Wales yesterday for the first stop of a tour which will take her around the devolved governments in the UK before the triggering of Article 50. May speaking in Swansea made it clear she was aiming to “deliver on Brexit and get the right deal”. She went on to suggest that Brexit was more than just about leaving the EU and was an opportunity to change the way the country worked. Furthermore, she wants to ensure that any economic growth and prosperity was felt across every part of the UK.
The Institute for Government has warned there could be an enormous strain on Parliament as there could be as many as 15 new bills to review in order to deliver Brexit. There will be a whole raft of new policies that will need to be implemented and its likely to take up most of Parliaments sessions. The Government are confident that all the new legislations will be completed within the timeframe, however there is unlikely to be little room for “non-Brexit” legislation.
Now that there is a line drawn in the sand, if you do have a currency requirement it’s important to be in touch with your broker. Notifying your account manager could help to make sure you’re trading at the levels you want to achieve, especially as there could be increased volatility once Article 50 is declared. If you havent traded with us before, signing up is quick, simple and free. Click here to register an account and one of our specialists will be in touch.
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