The Pound has fallen sharply during the early hours of Wednesday’s session, despite key economic performers highlighting further resilience to the vote last June. Mortgage approvals and consumer credit were both up for January, signalling a ‘business as normal’ from consumers, who remain fearless to the upcoming Article 50 deadline.
Markit Manufacturing PMI posted a small contraction but remains well above expectations for post-Brexit Brtiain.
But the Pound has lost traction against both the Euro and US Dollar, driven by political factors around the Brexit bill in the House of Lords. Hopes for the UK ‘s single market access after Brexit were crushed yesterday, when the House voted favourably against the amendment. The big debate today centres around EU citizens and their rights, which Government have promised on the assumption of reciprocal rights.
The House of Lords are fighting for a guarantee on EU workers who currently reside in the UK, and if the House vote in favour of the ammendment it could put dents in Theresa May’s Brexit deadline.
The general consensus is very clear, Home Secretary Amber Rudd has warned the House of Lords not to delay the Government’s Brexit deadline and its becoming increasingly clear that the House of Lords will have little power over future Brexit plans outlined by May.
The Brexit green light
A last minute attempt to change the Government’s stance on Brexit Britain looks unlikely to materialise, and there are very few indicators that suggest or provide hope that Article 50 will be delayed. With this in mind, GBP investors are preparing for an EU-exit take off, and the Pound’s current trading levels may begin to fall against the Euro and US Dollar.
Holiday makers may be prudent to allocate funds for currency sooner rather than later, as its expected another drop in Sterling exchange rates could emerge resulting in higher costs for Brits travelling this summer.