The Prime Minister appearing before the Liaison Committee yesterday made it clear that MP’s will be given the opportunity to discuss plans before the negotiations start next year. Mrs May was still adamant that Article 50 will be triggered by March and was confident that there would be a deal agreed within the 2-year window. The PM announced that she would be making a speech in the New Year revealing what the government’s position would be. May was also keen to suggest that she will lay out how this is an opportunity for the UK to “forge a truly global Britain”.

Nicola Sturgeon believes the UK can remain in the bloc

Scotland’s First Minister yesterday suggested that it would be “democratically justifiable” for the UK to remain in the single market despite Brexit. However, she also suggested that if the UK were to leave the trade bloc then Scotland could possibly still remain. The Government were quick to rebut this suggesting a special deal for Scotland is unrealistic.

Nicola Sturgeon went on to say that she would want Scotland to hold a second referendum on Independence. If this were to be instigated, then that would add even more uncertainty to Sterling and cause major volatility. Considering the effect the Brexit decision had on Sterling, if Scotland split from the UK at the same time as Article 50 negotiations then there could be huge market movements.

Supreme Court decision to influence Sterling

The turn of the year could be a rocky start for Sterling as it looks that the UK will be able to start the process of leaving the EU by March, especially as Theresa May is keen to see this happen. If you require to purchase currency with Sterling at the start of next year it may be prudent to consider getting in touch with your broker to discuss your requirement.

If you plan to make a currency transfer early in the New Year, a number of important factors could shape Sterling exchange rates. It may be worthwhile speaking with one of our experts on 01494 725 353, alternatively, you can email me at brf@currencies.co.uk and Id be happy to assist you with any questions.

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