House of Commons debate on Brexit bill

Yesterday afternoon MP’s began their two day debate regarding the parliamentary Article 50 bill. With 99 MP’s wanting their say on the matter, the debate was scheduled to finish at midnight and the final vote on whether to send this to the next stage in Parliament will take place today. This is all still in the hope that Theresa May’s March 31st deadline will be achieved, so that she can begin formal discussions with the EU.

If the vote goes smoothly and according to the Government’s plans, it will then be taken to the House of Commons next week where opposing parties will try to push through their amendments. Brexit Secretary David Davis said that ‘It is not a bill about whether or not the UK should leave the EU, or how it should do so’, that the decision has been made by the majority of the British public and that it will be adhered to.

Expected timeline of Article 50 Bill

  • 31st Jan-1st February – Two day debate on the Brexit bill, with a vote on the 1st February on whether to send the bill to the next stage
  • 2nd February – White paper could be published, stating the Governments formal policy stance on Brexit
  • 6th-7th February – Bill goes to House of Commons where MP’s can push for revisions and amendments
  • 8th February – The end of the Committee stage, further debates from MP’s and then a final vote
  • 20th February – House of Lords debate – if there are no amendments this will be sent to the Queen for her approval and to become law.
  • 7th March – If the Government’s hopes of the bill being passed go to plan, Theresa May will be able to trigger Article 50 at any point hereafter.

Will Manufacturing provide a boost for the Pound?

The Pound came under pressure against the Euro throughout the course of yesterday, which could partly be due to the debate being streamed live, with knee jerk reactions from Investors following as the debate unravelled. However Consumer Credit and Mortgage Approvals data also provided negativity, with fewer people borrowing in December, and demonstrated a slowing housing market. All this coupled with a host of positive data from the Eurozone, specifically Gross Domestic Product, Inflation and Employment data, meant that a €200,000 transfer became over £1,800 more expensive if purchased at the lowest point of the day.

This Morning at 9.30am will see the release of Markit Manufacturing PMI, providing an insight into business conditions in the Manufacturing sector. If this data follows the recent positive trend we could see a spike for Sterling sellers to take advantage of. On Thursday, the Bank of England will announce their latest Interest Rate decision, and release the Quarterly Inflation Report. Although no change in rate is expected, the report will provide a clearer idea of the current state of the UK economy, providing the Banks forecasts and hints on future monetary policy changes. This is likely to be a key driver for GBP exchange rates, therefore any clients with a pending currency transfer could benefit by detailing this to their account manager ahead of this announcement.

With a deadline for Article 50 now set, clients with a foreign currency requirement may wish to act now in order to protect their position. Call us on 01494 725 353 or email me at ajs@currencies.co.uk to book your transfer.

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