The Pound has gained ground against all major currencies overnight following news that Theresa May has managed to return from Strasbourg with some progress on her latest Brexit withdrawal deal.
Today is crunch time for Prime Minister May as she awaits the meaningful vote on her latest Brexit deal, which should be of great importance for Sterling exchange rates.
News overnight suggested that the latest developments with the deal have increased the chances of it being voted through. However this is still far from a foregone conclusion. For those holding out for a Sterling spike you must aware that there is no guarantee that the Pound will continue this climb.
My personal opinion is that if a deal goes through today then we will most likely see further Sterling strength against all major currencies but should it not get voted through then we are in for a bout of uncertainty over the next 48 hours and the Pound may lose value.
This would lead us onto two further votes, one for no deal and one for an extension to article 50. It is unlikely that the option of ‘no deal’ would get voted through, however if it did then we may see Sterling fall out of favour. Should we see an extension to Article 50 then it is hard to call which way the markets would take this.
I feel now that even if the vote goes through today then we may still need to seek an extension as there are still a lot of issues to iron out and very little time to do so.
All in all (and it is somewhat of a lottery to predict at present) my personal feeling is that the Pound will have a strong week and that even if the vote does not get through tonight, the Government are on the cusp of getting a deal over the line and they will most likely get something through in the coming days and weeks.
We will be running a live blog on the vote on this site later today so be sure to keep checking back for the latest updates.
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