- Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
- November 20, 2017
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The pound was up this morning hitting a 2 and a half week high against most currencies, due to the Brexit news over the weekend being interpreted as positive, Germany election shambles and the US investigations.
Britain will submit proposals on how to settle its divorce bill with the European Union before an EU summit next month and is expected to negotiate hard, according to finance minister Philip Hammond.
The euro was broadly lower against the other major currencies this morning after talks aimed at forming Germany’s next coalition government collapsed overnight, raising fears over political uncertainty in the euro zone’s largest economy.
Negotiations broke down after the pro-business Free Democratic Party (FDP) walked out of the talks, ending efforts to form a three-way coalition government.
The collapse of talks leaves German Chancellor Angela Merkel with the option of forming a minority government. If no new government is formed the president can call a new election.
Over in America The House of Representatives on Thursday passed a bill that would lower corporate taxes and cut individual taxes for most households in 2018, in a step towards the biggest U.S. tax code overhaul since the 1980s.
However, the legislation may face a tougher fight in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.
Markets were also jittery due to an ongoing investigation into potential Russian interference in the 2016 Presidential election.
With the Budget on Wednesday we expect the markets to be volatile; speak to us in regard to your upcoming currency requirements.