Article 50 will be triggered this Wednesday
- Posted by currencies in Bank of England, Brexit, Currency, EUR, GBP, Inflation, Prime Minister, Retail Sales, Sterling, UK, Uncategorised
- March 27, 2017
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It seems like a very long time ago that the UK public came out and voted to leave the EU, after all of the issues in the Houses of Commons and in the Supreme Court, finally on Wednesday we will see the PM begin the process of leaving the EU.
Last week we did see some strength for the Pound and I know many of you would have taken advantage of it as this week is expected to be very volatile… the common consensus is that the Pound will weaken on Wednesday, however, there is no guarantee which way the Pound will go, my guidance is just to ensure you are not affected by whatever happens by ensuring you are mitigated from exposure (Feel free to contact us about this).
After Wednesday, the next event that will be important will be the first “Brexit Summit” held by the EU on April 29th- this will be their final response to the triggering of Article 50. The summit will be used as a way for EU leaders to adopt their formal guidelines for negotiations which will be headed by the European Commission.
Leading up to Wednesday there isn’t any noteworthy data so the focus will be on the UK, it is also important to note that Lloyds Bank have recently put out forecasts for GBPUSD & GBPEUR, they expect the GBPUSD rate to be as low as 1.09 by the end of this year, but expect the GBPEUR rate to be at 1.18. Of course, all forecasts should be taken with a pinch of salt, but it gives you an idea of where the major banks see the Pound through Brexit negotiations this year.
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