- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, election, EUR, GBP, Inflation, No Deal, Prime Minister, Sterling, UK, Uncategorised
- January 7, 2020
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This Morning the pound has started on the right foot and has strengthened against most major currencies.
That’s in part because the pound got a boost following the latest UK services PMI, which came in at 50.0 against the 49.1 expected and the 49.0 seen the previous month.
A much-needed bit of positivity for the currency – last week it was plagued by Brexit anxiety and terrible manufacturing and construction PMIs – enough to send it 0.5% higher against the dollar and 0.4% against the euro.
Secondly, Britain’s emergency preparations for a no-deal Brexit have been halted “with immediate effect”, as Prime Minister Boris Johnson’s deal to leave the European Union is expected to be approved by members of parliament, Sky News reported.
A no deal Brexit could be detrimental, so the above news is good for Sterling.
The UK parliament returns today and will debate the Brexit bill, which includes a clause ruling out any extension of the transition period for trade talks beyond December 2020.
Furthermore, on Wednesday Johnson will be meeting with Ursula van de Leyen (Head Of ECB) to start of the UK-EU post Brexit trade deal. With the Prime Minister saying that the next rounds of Brexit talks will be a lot smoother than the fist. Any positive signs from the meeting with the European commissioner will benefit GBP.