The House of Lords voted yesterday in favour of protecting EU citizens rights who are residing in the UK. The pound suffered as a result as this could potentially delay the invocation of article 50. The PM has however made reassurances that this will not cause a delay in an official exit from the EU.
Personally I am surprised the market reacted in this fashion. I am not surprised this amendment was made and I would not expect it to delay the triggering of article 50.
The brexit bill will now be handed back to the House of commons for approval. I doubt there will be much resistance. If more amendments are made however we could see political ping-pong as the bill passes back and fourth between houses.
Between now and the triggering of article 50 the markets will be extremely difficult to predict. If you have to trade during this period it is vital to be in touch with an experienced broker. If you would like my no obligation help drop me an e-mail at [email protected]. Let me know the currency you are trading, your time scale and a ball park figure as to the size of your trade and I will endeavour to provide a trading strategy to suit your individual requirement.
After the invocation of Article 50 I expect Sterling to gain strength. Sterling’s current position is due to the uncertainty surrounding trade negotiations, when there is more clarity in regards to trade deal I am confident the pound will gain momentum. Morgan Stanley analyst are of the same opinion, stating “the pound is the most undervalued currency in the world and it will return to pre-brexit levels.
The Euro could be in for a rough year with three general elections with the possibility of far right parties gaining power and the chance of referendums. Add in Greek debt and Italian Bank’s bad loans in excess of €360bn and we could be seeing the Euro in a much worse position later in the year.