Unsurprisingly, sterling exchange rates have remained relatively indecisive since the start of the month. Despite numerous indicative votes and cross party crunch talks, in the words of Labour’s business policy chief Rebecca Long Baily, there have still been “no real changes” from the government and the markets have kept their cards close to their chest as a result.
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Ultimately, it does seem likely that sterling’s value for the foreseeable will be predominately driven by the ability of the PM to align both her Party's interests and that of Corbyn's Labour Party in the early stages of this week ahead of the EU summit meeting on Wednesday.
Which leads onto the next question later on in the week. Will the UK be granted an extension? Reports are that Belgium, Spain and France are convinced it will undermine the integrity of the EU if it was to grant a long term extension.
French president Macron has been ramping up the pressure on UK negotiators to bring something of value to the table and he may well prove to be decisive in the matter ahead of Wednesday's meeting too.
Clients in the market for foreign currency and looking to time their transactions may want to get in touch well in advance of what could be a volatile Wednesday morning.
The headline Gross Domestic Product (GDP) release is predicted to show no movement which adds to fears of a prolonged period of recession around the corner. The Year on Year is still expected to post a slight rise to 1.6% which has the potential to provide sterling some much needed support amidst all of this political uncertainty. Trade figures are also expected to fall as has been the case for most leading nations around the world. Geopolitical tensions have continued to halt demand and have anchored exports figures for all.
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