Sterling Continues To Push Against Majors
- Posted by Shyam Gokani in Uncategorised
- January 25, 2017
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Sterling continues gains against major currencies this morning, pausing after a rollercoaster ride yesterday that followed a Supreme Court ruling that Britain’s government must go through parliament before starting talks to quit the EU.
The pound jumped to five-week highs on Tuesday after the first sections of the ruling were read, but was then hit by a wave of profit-taking to sink as low as $1.2419. It was trading back above $1.25 in early deals in London today.
That was partly fuelled by investor worries about how Northern Ireland and Scotland would respond since the court also ruled the government does not need to go through the UK’s regional assemblies to start Brexit talks.
From here, analysts said, the focus would be on the government’s moves to pass the legislation necessary to launch the talks. A bill is expected within days but opposition parties are expected to seek to amend it.
The Bank of England will leave its record-low interest rates and other stimulus measures unchanged at least until 2019, even though it is likely to revise up its 2017 growth predictions again next week, a poll found this week.
All but one of the 67 economists polled in the last few days said the Bank would keep its policy unchanged when it announces the outcome of the latest meeting of its rate-setters on Feb 2.
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