Sterling fell 0.4% during today’s trading follow Belfast’s High Court rejecting plans that would allow Northern Ireland to Veto any Brexit deal, handing all responsibility back to UK parliament. Markets are already nervous regarding the timing of Article 50 next March, with Theresa May in the driver seat for all post-Brexit negotiations.
The Pound has recouped some of its losses against the Euro and US Dollar, but remains vulnerable to further losses once Asian markets resume later today.
UK Manufacturing and Construction PMI next week
Figures released next week could continue to sway positively given the recent fall in the Pound. UK exports have taken a surprise U-turn as British goods become cheaper overseas. Whilst both releases could boost the Pound the negative outlook for the UK continues which is likely to overshadow positive economic data.
No closer to Brexit deal
The UK is no closer to a Brexit strategy with Nicola Sturgeon – Leader of the Scottish National Party, no closer to understanding the UK’s stance on Brexit. Markets fear a hard Brexit which has been previously hinted at by Theresa May and other members of her cabinet, and with little reassurance from Government Sterling could be in for further falls next week.
If you are buying foreign currency with Sterling, the Pound could hit parity with the Euro when Theresa May starts the formal process of leaving the EU. Buying sooner rather than later could help mitigate risk.