Currency Pair		% Change in 1 month	Difference on £200,000
GBP	EUR	4.83%	€10,640
GBP	USD	4.38%	$10,936
GBP	AUD	4.82%	$16,600

This morning, the Conservative Party has triggered a vote of no confidence in Prime Minister Theresa May. At least 48 letters have been given to the Chair of the 1922 committee, signalling that the Conservative Party no longer have faith in the Prime Minster to deliver the deal for Brexit. As this is breaking news, I would recommend being in touch with us early to find out how this will affect your trade throughout the day, as the vote won’t happen until later today. At present the pound remains steady as there is still a chance that she can win back confidence, however in my opinion the pound has a much larger possibility of falling further than it does of gaining strength.

Sterling sell-off pushed the Pounds value down as PM desperately fights to save her Brexit deal

No room for re-negotiation

Prime Minister Theresa May’s hopes for a re-negotiation of the Brexit deal were dashed yesterday as reports emerged that both European Commissioner Jean Claude Juncker and German Chancellor Angela Merkel both told Theresa May there will be no re-negotiation on the Brexit deal as she travelled to the Hague to discuss the Irish Border backstop.

The Prime Minister will head to Ireland later today to open talks with the Irish Prime Minister Leo Varadkar, but what they will talk about is unclear. Theresa May’s spokeswoman said that the British Parliament is due to vote on a deal on or before the 21^st January and if no deal has been reached, Parliament would be given the option to debate on the issues.

What is clear is the pressure that the Prime Minister is surely to be under as she returns to Government unable to re-negotiate a deal and fights for her leadership. The pound fell to a 20 month low against the Greenback yesterday, (GBPUSD 1.2490) on news that a vote of no confidence has been triggered this morning.

UK Labour Market Data

Despite official data released yesterday showing that UK workers received their biggest pay rises in the 3 months up to October, Sterling remained unmoved as political tensions dominate sterling’s value.

What is interesting to note is that whilst on going short term uncertainties remain, the labour market seems to be ignoring the Brexit debarkle for now and is keeping hopes for a 2019 interest rate alive.

For now though, markets are firmly fixed on Brexit. One week volatility remains close to the highest levels this year with the spread of month volatility for the euro the biggest since the 2016 referendum and second largest in the euro’s history, 20 years. In my opinion, if this volatility turns into reality, we will see the pound becoming a lot cheaper to buy across the board.

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News

The PM’s message was clear but will MP’s react positively to it?

21st March 2019

GBP Forecast – sterling’s Value Tumbles as Brexit Saga Rumbles on

Sterling sell-off pushed the pound's value down as PM desperately fights to save her Brexit deal.

By Matthew Vassallo

Pound Sterling (GBP)

20th March 2019

Brexit vote not ruled out as Sterling exchange rates await next move

Brexit deal yet to be ruled out; Theresa May will request a short extension to Article 50 from the EU in hopes it will offer enough time for another Meaningful vote.

By Daniel Wright

Pound Sterling (GBP)

19th March 2019

John Bercow Dashes PM’s plan

Speaker of the House of Commons has said that there will not be another vote on the PM's Brexit plan unless there are sufficient differences to make it worthwhile.

By Ben Fletcher