Deal or No Deal Debate
6 December, 2018
Markets remained fairly flat throughout the days trading as the Brexit debate presses on. Members of Parliament have been in and out of the house of commons voicing their opinions and Theresa May has continued to stick by her position, incessantly repeating that they will not be revoking Article 50 and that backing her deal is the only way forward, as the EU will not be offering up a better deal.
The UK released its latest Markit Services stats which showed a slowdown. Posting a disappointing figure of 50.4, down from the previous 52.2 in October and reaching its lowest level since July 2016. Not a great statistic as the services sector forms the largest part of the economy, and any figure below 50 translates into a downturn in growth, so posting this close the danger territory is not a good signal. Typically data like this would have impacted exchange rates however it looks like Brexit sentiment continues to prevail.
In the day ahead, more eco stats are released. Majority of which is coming from across the pond with the US posting a handful of stats at lunchtime and into the afternoon – most notably Trade Balance, Services PMI, Non-Manufacturing PMI and speeches from Fed’s Powell and FOMC Members Bostic and Williams.
Sterling is likely to remain under pressure as arguments over Brexit continues to weigh heavy and markets continue to follow the remaining days of debate in the lead up to the vote on whether the deal be voted down or be set to proceed on Wednesday the 11th. With uncertainty leading the way if you have an upcoming transfer due, and are concerned about the potential cost to you regardless of the Brexit outcome, give us a call to explore the options we offer to help you lock in a rate and reduce the headache of international money transfer.