UK Prime Minister Theresa May spoke in an interview with Sky News yesterday regarding upcoming Brexit negotiations which she hopes to begin by the end of March. She has been criticised for not having a clear approach ahead of negotiations, which was confirmed by Sir Ivan Rogers, Britain’s Representative to the European Union, when he resigned from his position last week. Ministers have urged her to provide clarity on her plans before entering into the most important negotiations for a generation.
Mrs May said during her interview that more details of her strategy for the UK will be released over the coming weeks, most likely during a speech next week.
This comes at a time where we are all waiting in limbo for the decision to be announced by the Supreme Court on whether she has the power to trigger Article 50 without the assistance of Parliament. This announcement is anticipated to be between 12th-17th January, however historically announcements such as these have taken place on a Wednesday.
As we still have no set date for this information, and the decision is likely to cause aggressive swings on the currency markets, any clients with a Sterling transfer to make over the coming months would, in my opinion, benefit from speaking with their Account Manager here who can help to put a plan in place ahead of this announcement. If the Supreme Court decide that Mrs May cannot go ahead and invoke Article 50 without Parliamentary assistance, a ‘Soft Brexit’ could be the most likely outcome. I feel that this would instil more confidence amongst investors than if they opt for a ‘Hard Brexit’, and GBP/EUR exchange rates could strengthen above 1.20 for the first time since July.
Last week, data for the UK Service sector showed impressive growth in December at the fastest pace in 17 months. On Wednesday Manufacturing and Industrial data for November will be released at 10.30am, and if this also impresses we could see Sterling strengthen once again.
This will be followed by NIESR GDP figures at 4pm which will provide an insight into growth of the UK economy. GBP/EUR rates have been range-bound between 1.16/1.17 for over two weeks now, however further positivity could spark rates to break out of these levels, therefore clients looking to purchase Pounds with Euros may look to do so before this release.
For more information on how upcoming news and data releases could affect your Pound Sterling exchange please call our trading floor on 01494 725 353 or email me directly at email@example.com.
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