- Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, GBP, Referendum, Sterling, UK, Uncategorised
- March 16, 2017
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Sterling hit an eight-week high this week in reaction to Parliament’s approval of the Article 50 bill – but with at least two years of negotiations ahead, could the currency fall even further?
MPs voted down two amendments added by the House of Lords to the Article 50 bill on Monday evening, with peers voting to overturn their own amendments the same night – clearing the way for Theresa May to pull the trigger on Brexit negotiations.
Looks like the papers for Brexit will be filed in Brussels by the end of this month. This is not a good move for the British and the European Parliament. This is going to make it hard on them to set a bar for others.
Therefore, expect the British pound to continue to decline. The value of the British pound should be watched carefully now.
All signs point to the fact that the European authorities will be “tough” on this request and not make it easy on the effort. Obviously, if they are too easy for a member to withdraw from the community, others may be more prone to make such a move going forward.
If news comes out of a hard Brexit there is the possibility it could fall even further.
To me, the value of the pound will give us an idea on how market participants believe that the negotiations are going.
This will be crucial, given everything else that is going on in Europe this year… especially the elections taking place over the next nine months or so.
Today’s main focus will be on the BOE rate decision and Mark Carney’s speech. If any of the members have voted for a rate rise we could see that have an impact on the value of Sterling. This is expected at 12:00 GMT