The pound has suffered further losses as we end the week, falling from the 2 week highs seen on Wednesday, as Brexit uncertainty continues to be the main driver for sterling exchange rates. As a result of the ongoing Brexit uncertainty, Consumer Confidence figures fell to the lowest point in 11 months yesterday, dropping to -13 in November from -10 in October. The Bank of England also announced the weakest consumer borrowing figures in over three years yesterday, which caused the pound to weaken against a basket of major currencies. To put this into monetary terms, a €200,000 purchase is around £4,000 more expensive now compared to the levels seen just over 2 weeks ago.

Currency Pair% Change in 1 monthDifference on £200,000
GBPEUR2.8%€6,350
GBPUSD3.6%$9,115
GBPCAD3.3%$11,160

Theresa May spoke yesterday to heads of the Commons select committees and suggested that the EU hasn’t yet been convinced that there should be frictionless trade between the EU and UK after Brexit, which is one of the points of contention pushing some members of the Conservative Party to vote down May’s current deal. She also stated that if another referendum was to be held, the UK would risk losing the agreed deal and that this would require an extension to article 50.

May held strong on her stance that if she loses the commons vote next week, she would prepare for a no-deal Brexit despite stark warnings from the Bank of England yesterday that this could push the UK into its deepest recession since the 1930s. As it stands, almost 100 conservative MP’s are planning to reject the deal.

Consumer Confidence falls to 11 month low

Parliament to vote on amendments to Brexit Bill before final vote on 11th December

The Government’s parliamentary spokesperson Andrea Leadsom, said afterwards that Parliament will vote on alterations to Theresa May’s Brexit deal before the vote on the final deal which will take place on 11th December. This would suggest that this reduces the chance of a no-deal, and also a vote of no confidence in the Prime Minister, as MP’s will have more of a say on what the final deal will look like.

A televised debate including Theresa May is likely to take place on Sunday 9th December, however the timing and channel in which this is aired is yet to be agreed.

The next couple of weeks are expected to be incredibly volatile for the pound and clients with an upcoming currency transfer involving sterling could benefit from keeping in close contact with their account manager to keep up to date with fast moving Brexit updates.

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