Theresa May faces one last obstacle as she prepares for her divorce hearing with the EU: the EU 805 unelected peers of the House of Lords.
Effectively, this means that her peers want Parliament to have a say in what the EU exit deal will cover. This week we have seen a debate in House of Lords and yesterday was the second day of peers discussing article 50 legislation.
Two days have been set aside for the European Union (notification of withdrawal) Bill’s second reading debate – however this is the first time the upper chamber has been given a chance to debate the legislation. Although the House of Commons have approved legislation to trigger the article 50 divorce paper, some see the two day House of Lords event as a final chance to force the UK Prime Minister Theresa May to rethink her approach before the negotiations.
Yesterday, Sterling climbed to 1.1834 and managed to hold its ground. I personally believe this came from comments from the debate made by Lord Lamont, who said that the remain camp and pro-Europeans now have a ‘duty’ not to undermine the government over Brexit, and has urged his peers not to add conditions as the bill passes through the Lords as he believes this will undermine the governments negotiating position.
At Foreign Currency Direct PLC we have been following the Brexit tale closely since the referendum on the 23rd June 2016. Every member of our trading team is well equipped to keep you up to date with the latest twists and turns, get in contact to find out how politics can affect your trade.
BOE Governor Mark Carney and Monetary Policy Committee Members Haldane, Vlieghe and McCafferty testified to the Treasury Select Committee yesterday.
Mr Haldane stated that sizeable errors were made in the run up to the 2008 financial crisis, however added that more recent mistakes – such as misjudging the impact of the UK leaving the EU.
This could pose serious questions in the long term value of the pound, earlier last week Mark Carney stated that there could be a consumer slowdown further on in the year from the weaker Pound.
This raises questions that the long term strength of the pound may be tested, due to there being so many unanswered questions and uncertainties surrounding Brexit. It may be worth taking advantage of current levels before formal negotiations begin next month.
The final important data release for Sterling clients this week will be released this morning, Gross Domestic Product Figures. This is arguably the most important measure for an economy and will attempt to capture a snapshot of the economy at that moment in time. If this figures deviates from what is expected, I would expected volatility for Sterling exchange rates.
Sterling exchange rates today, and those with a foreign currency requirement may be prudent to make the most of the highs before the invocation of Article 50. Call us on 01494 725 353 or email me here to find out how much we could save you.
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