Pound holds gains
21 February, 2019
Yesterday was a fairly quiet day in the currency markets. With no real data out, most of the trading was sentiment based, which saw Sterling hold its gains from Tuesday. Trading just under the highs of January and up 2 cents compared to close of business Friday. These gains will be a welcome sight for anyone needing to sell GBP and have been holding off. But as seen previously when the rate has been up it has come down equally as quickly, why not take advantage of this with our forward contracts to negate any upcoming Brexit uncertainty.
UK parliament showed further signs of turmoil yesterday, with the newly formed Independent Party gaining further popularity. Now the 5th largest party in the UK and up to 11 members, adding another Labour MP and 3 from the conservatives. Those 3 taking down Theresa May’s majority the parliament to just 8! Any further and we could see the PM lose her majority and a hung parliament, adding further questions rather finding answers to the current issues.
The PM flew out to Brussels yesterday to again try and find a solution to the Backstop issue that seems to be the largest remaining obstacle to try and push a deal through. However if rumours are to be believed, the EU are preparing to delay Brexit and extend article 50. This would possibly mean that a ‘No-Deal’ scenario will be taken of the cards. Jeremy Corbyn is due to fly there today to discuss Labour’s policies and try and win support from the EU.
With so much still happening stay in touch with your account manager to be kept up to date.