Sterling rebounds after May's vote defeat

 

 
 

Hi everyone,


So as expected, Theresa May's deal was historically voted down last night and now we wait to find out if she will continue on as PM next week. No-one at this point in time is expecting Jeremy Corbyn's no confidence motion to pass, but stranger things have happened!

What has surprised the majority of analysts is the Pounds reaction after the vote. Sterling dropped 0.5%+ across the board as the vote loomed yesterday afternoon, but once the result concluded, £ reacted positively even with the news of a no-confidence vote. How?

This week MP's will table their own versions of a deal and we will see groups of MP's backing each other's bill. The fact is, no-one will end up with their perfect Brexit scenario, so it's down to Theresa May to listen to her cabinet and compromise, before speaking to the EU.

Right now, there is no majority position in parliament which effectively means Article 50 will have to be be extended. Sterling has stabilized because of this and the markets are starting to factor in more and more that a 'no-deal' scenario will not come to fruition. 

The waiting game continues with this mess, but for now at least £ sellers are enjoying some unexpected gains!



 

 

 

Upcoming Data

 

 

Thursday, 17th January, 2019


00:00 UK - House price balance
09:30 UK - BoE credit conditions
10:00 EU - Euro-Zone CPI & construction output
13:30 US - Jobless claims & housing starts


Friday, 18th January, 2019


09:30 UK - Retail sales
14:15 UK - Industrial production

 
 
 

Dan Waterman
Office Manager

 
 
 
 
 

 

 
 
Image Image
Governing Bodies and Registrations

Excel Currencies are a fully Authorised Payment Institution with the UK Financial Conduct Authority. ( Ref: 911228) and HM Revenue & Customs (MSB No: 12190705) as a Money Services Business. Excel Currencies ltd are also members of the UK Money Transfers Association (MTA) and the Association of International Property Professionals (AIPP).

Security of Funds

Excel Currencies ltd operate a Safeguarding Client Account System which protects all funds in these accounts against any liabilities that Excel Currencies ltd may have.

Excel Currencies Ltd, Enterprise House, 8 Essex Road, Dartford, Kent DA1 2AU

Registered in England and Wales, No. 05171054

Copyright © Excel Currencies Ltd 2020. All Rights Reserved.

Help Options Available

Contact Us

Live Chat OFF Live Chat ON