Brexit Bill Passed Pound Stays Strong

2 February, 2017

Robin Haynes

Sterling continued to hold its nerve yesterday as the European Union Bill was passed with a vast majority in the Commons.

The Government’s Bill, which paves the way for Article 50 to be triggered in as little as five weeks’ time, passed as expected after two days of debate between MPs. The next step in the process is for the Government to outline more detailed plans for its EU exit strategy, in a White Paper document to be released later today. The White Paper, promised by Theresa May after pressure from MPs, will initiate further debate and amendments before the Bill goes before the House of Lords.

During this process the Pound will be vulnerable to any policies which are seen as likely to hurt the British economy, or which might support the idea that negotiations could be concluded within the target 2-year period, bringing an earlier than expected end to the UK’s membership of the European single market.

With rates likely to be volatile over the coming weeks and months, make sure you are in touch with us at Currency Index to keep on top of the latest developments.

Other Data Today

Today we also have the Bank of England interest rate decision, and monthly press conference, with Mark Carney, set to announce a hold in interest rates at 0.25% and a freeze in the Bank’s QE programme. What will be more interesting is the following press conference, where Mr Carney is likely to discuss economic prospects amid Brexit negotiations and will be keenly watched by the markets.

ECB President Draghi also speaks today, and tomorrow we have the key US non-farm payroll data to keep us busy.

With sterling currently sitting at month-long highs against the Euro and US Dollar, it could be a good time to consider fixing your exchange rate for any future requirements in this uncertain time.