Sterling today has fallen over 1% against the Euro following comments from Prime Minister Theresa May over the weekend. May suggested that the government is looking towards a “Hard Brexit” which is essentially putting immigration at the front of the Brexit negotiations, ahead of access to the single market. Unsurprisingly this was not received well amongst financial markets and Sterling fell against nearly every currency.
The latest drop in Sterling has continued a rather negative start to 2017 and in my opinion this looks like it could continue. The Supreme Court will decide whether or not MP’s will be able to vote on the Brexit plan soon after the High Court ruled they should be given the chance. Personally, I don’t think it will have an effect which way the Supreme Court decide, Sterling is likely to suffer. If the court decide Theresa May can do things her way, then Article 50 will happen will happen before the end of March. If they decide that the MP’s have to vote, then the whole process could just become even more prolonged.
Important Week of Data
There is several pieces of date being released in the UK this week, whilst it may not have a major effect with the Politics taking centre stage anything overly negative could have a major impact. Industrial and Manufacturing Production data will be out for November on Wednesday, followed by the NIESR GDP Estimate. Considering the positive data over the last few months for the UK I would not be surprised to see GDP boosts. However even if that were to be the case I wouldn’t expect to see much movement.