Brexit, Brexit and more Brexit

Yesterday was all about Theresa May and her upcoming speech due in the Commons at lunchtime. Markets had seen sterling improve the day before as rumours circulated about what May might say regards a delay in the Brexit process and started off on the front foot again on Tuesday ahead of her address.

With talk some Tory rebels might move against her if a No Deal Brexit remained an option come the end of March, it seems Mrs May needed to address the issue. With that in mind, the PM confirmed she would move forward the date for the next “meaningful vote” on the deal to the 12th March, with two further votes on offer, should this deal, with any amendments agreed in the meantime with the EU, not be voted through Parliament.

If she gets voted down again, the following day MPs will have the chance to vote on whether the UK can leave the EU with No Deal. This means the UK will “only leave without a deal on 29 March if there is explicit consent in the House for that outcome”.

If this is voted down, MPs will once again go to vote the following day (14th March) to decide on whether we then request an extension to Article 50 and delay leaving the EU on the 29th March. Theresa May made her feelings known on the matter stating; “Let me be clear, I do not want to see Article 50 extended. Our absolute focus should be on working to get a deal and leaving on 29 March,”  adding any extension mustn’t go beyond June and “would almost certainly have to be a one-off”.

The result for the pound was an extended run across the board, seeing sterling/euro rates reach levels not seen since May 2017 and a saving of over £10,000 for anyone buying €200,000 yesterday, compared to December – a belated Christmas present worth the wait for sure!

For those who didn’t take advantage yesterday, it’s worth noting we have no UK data today and only US durable goods orders and Canadian inflation readings this afternoon to contend with, meaning sentiment is going to be running the show. The pound made big gains yesterday, breaking some key resistance ceilings along the way, so the question being, whether markets have now fully priced in the potential Brexit delay already and if so, will we see some sort of correction over the coming days as profits are taken and opinions voiced on the possible outcomes for the UK, should this process get dragged out further.

To take advantage of the gains speak to one of the team sooner rather than later to secure your upcoming currency requirements on a forward contract for a small percentage of the overall cost. Or speak to the team about Stop Loss and Limit Orders for those who prefer to take more of a gamble on the current run.