Sterling exchange rates continue to fall lower as those Brexit concerns persist as the deadline for the end of March now fast approaches which will take us then to 9 months past the vote to leave the EU on 23rd June 2016.
The latest development is that UK Prime Minster Theresa May will be making a statement on Brexit next Tuesday and high volatility should be expected immediately after. Theresa May is widely expected to give some outline as to what Brexit will entail and should be the first real offering as to what is going to happen.
The other political factor which must be contended with is the Supreme Court ruling on whether the government must consult Parliament or not, before invoking Article 50. It is my understanding the government has requested early sigh of the verdict so it may even be possible the government already holds this information now. Considering that Supreme Court rulings are normally offered on Wednesday’s then it would be quite fitting if the ruling was made public the day after Theresa May’s speech on Tuesday. As such I am expecting a hugely volatile week with two major political statements to be made which will carry immense implications for the UK and the price of sterling.
GBP EUR ends the week in the 1.14’s whilst GBP USD remains week sitting just below 1.22. The exchange rates for these pair are likely to see considerable movement next week.
As far as GBP USD is concerned the secret dossier surround President-elect Donald Trump is still making the headlines and may create some headaches for the US dollar but potentially the pound. Considering the British government have been mentioned in some of these alleged reports then it is possible the British American relations may not get off to quite as good a start after all.
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