Pound Volatility Ahead of May Brexit SpeechJanuary 16, 2017 11:50 am
The Pound fell over the weekend in reaction to reports that UK Prime Minister, Theresa May, would use her speech on Tuesday to discuss a so-called ‘hard Brexit’.
Although this is all speculation, the Pound fell to a little over 1.13 against the Euro – its lowest in 2 months. Overall, the Pound has fallen around 20% against the USD since the result of the EU Referendum – mainly due to the uncertainty around economic impact of leaving the EU.
US President-elect, Donald Trump, said that the fall in the Pound was ‘great’ for British business. He suggested that his Scottish golf course had benefited from the fall in the value of Sterling because a weaker Pound makes UK firms more competitive abroad. On the flip side, for Brits, it makes importing goods more expensive – not to mention foreign holidays!
May has said that she will start the formal Brexit withdrawal from the EU in the Spring, triggering Article 50 by the end of March. Few details have been released about the plans that have been made to leave the EU, so trader anticipation is at a high before her speech tomorrow. With Trump’s inauguration set for the end of the week, the market is set for a volatile few days.
If you need to exchange your currency and would like some advice on the market, get in touch with FTT by calling +44(0) 203 603 8940. Alternatively, you can email [email protected]
Tags: brexit, GBP to EUR rate, Pound weakens, UK leaving the EU
Categorised in: News
This post was written by Kayleigh Driscoll