Could the triggering of Article 50 be pushed back into April?
The Exit bill has now the left the House of Commons and now sits with the House of Lords. Initially it looked likely the PM would not have too much resistance invoking Article 50. However, now it seems it may not be as straight forward as expected with the House of Lords possibly seeking amendments.
There will be a two day period beginning on 20th March, the key topics of debate I would expect to be the following:
- A guarantee that Parliament will be given the opportunity to vote on the Theresa May’s final deal
- Updates to parliament on the progress of trade negotiations . (a minimum of one every three months.)
- A guarantee that the rights of three million EU citizens in the UK will be protected following Brexit.
Any amendments could well cause a delay in the triggering of Article 50 which could well weaken the Pound.
Personally I feel if you are selling Sterling it may be wise to hang fire unless you have to move short-medium term. Sterling is currently undervalued against he majority of major currencies. Even the US dollar is in danger of dropping against Sterling as Trump has stated that the high value of the Dollar will hurt exports. Despite, the Federal Reserve stating that their could be as many as three rate hikes this year, Trump has a point and this could delay any hikes in the US.
When should I buy Sterling?
If you are selling USD, AUD and particularly EUR I would take advantage of current levels. Many will be thinking of hanging on for improvements, there may well be the opportunity for Sterling weakness short term, but I would not procrastinate for small gains.
Selling the Pound short term? When should I move?
If you do have to move short term, you will need to be in touch with an experienced broker. If you would like my assistance I will be happy to help. You really will need expert help if you wish to maximise your trade if you have a small time frame. A Limit and Stop/Loss order may well be the contracts of choice.
UK Inflation – Well worth keeping an eye on.
UK inflation data came in today lower than expected. This is worrying as many economists are predicting a sharp rise due to the weak pound and it seems this is yet to filter through. With imports now being considerably more expensive it seems as though it is only a matter of time before price increases filter through to consumers. Let us hope there is not a significant increase as wages will certainly not be able to keep up, which could mean trouble for the UK economy.
If you would like my no obligation assistance feel free to contact me at firstname.lastname@example.org. Thank you for reading and I look forward to hearing from you.
Foreign Currency Direct