Momentous Week in Politics

Last week was a momentous week in politics in which the pound gained against the Euro and Dollar, closing just below 1.14 and 1.30 respectively, which was largely due to a perceived lower probability of a no deal come 29th March. And, according to analysts the probability of a second referendum has increased which could be largely positive for sterling.

Teresa May faces another testing week. Backbenchers have tabled amendments for an intervention bill that could potentially stop a no deal Brexit even if the government wishes to press ahead. The question remains- will Teresa May be able to break the deadlock by seeking changes to the backstop and forging a cross-party consensus?

It is likely that a lot will have changed by the end of this week, making accurate currency forecasts ever more challenging. If you currently have a currency exposure within the coming 3 months, be sure to speak to your dealer to discuss ways reduce risk.

The week ahead:

Tuesday
GBP average earning index
NZD CPI q/q

Wednesday
JPY Monetary policy statement
CAD Core retail sales

Thursday
AUD employment change
EUR ECB press conference