Pound holds gains

18 March, 2019

Nakhil Mahra

So after a busy last week, a week that saw Theresa May lose her grip off the current Brexit situation and now a delay to proceedings which will see us part of the EU, till June if not longer. The length will vary on outcomes this week, with Theresa May stubbornly bringing her deal back for a third vote tomorrow evening. Will it be third time lucky or another heavy defeat for the PM, a loss surely seeing a longer extension and more than likely seeing the UK part of the EU elections in May. Phillip Hammond yesterday confirming that leaving the EU on the 29th March is now ‘physically impossible’ for the UK. All this saw the rates hold their recent gains, trading at levels just below the rates seen in April 2017.

With the EU summit on Thursday, the PM will be hoping to go there with a deal passed through the commons and requesting a short extension to get everything signed off. But with the deficit still 154 votes, the quest to win over Tory rebels and convincing the DUP to back her deal could yet prove to be a challenging obstacle. With reports suggesting another £1bn on offer for the DUP to back her deal.

However, with Brexit far from settled and so many loose ends still needing to be tied up, seeing a fall in rates still a possibility. With a ‘No-Deal’ still not legally ruled out, the dangers of that situation arising cannot be ruled out. To avoid that risk why not take advantage of our forward contracts.

This week is another key week, with a vote on the PMs deal taking place tomorrow night and the EU summit taking place Thursday. As well as eco stats out periodically during the week.

This weeks data


9.30 GBP average earnings
Parliament Brexit Vote


6pm US FOMS statement


9.30 GBP retail sales
EU summit
12.00pm MPC Official bank rate votes/ Official bank rate


12.30pm CAD Core retail sales

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