Article 50 to be Triggered on 29th of March

21 March, 2017

Ashley Finill

Theresa May has now officially set a date for when the UK will begin the process to leave the European Union. The government will trigger article 50 next Wednesday the 29th of March. This finally gives the nation some clarity on Brexit while also removing the will we or won’t we and the past uncertainty. It should also remove most of the uncertainty in the Currency markets amongst investors.

When the news broke yesterday morning, Sterling only lost around half a cent throughout the day, as such this could add further speculation that when article 50 is triggered that the move is already heavily priced into the markets and Sterling’s downfall could begin to slow down. However, nothing is certain at this point in how the market will react come next week. Should you have an immediate requirement, it may be wise to be vigilant and act sooner rather than later to save any nasty shocks come next week. With something as big this Sterling could very easily lose more ground on the Euro by the time we get to the 29th and beyond.

Today we have a busy start to the morning as the UK have several key inflation data releases which should affect that rates. Producer price Index is expected to come in at 0.3% which is lower than last month. However, the year on year figure is supposed to be a higher the reading could potentially give the pound a boost. Also set to be released is Consumer price index which is supposed to come in better than last month’s reading of -0.5%. Should these figures be correctly predicted then Sterling may gain some strength, however, could the opposite occur then Sterling may lose some ground against its major competitors.

To be kept in the loop of all the goings on regarding data releases and how the rates are to be affected then stay in close contact with you account manager here this morning and throughout the day at Currency Index.