Sterling softens on Brexit confusion, Dollar strength


The House of Commons yesterday voted down proposals from the (unelected) Upper Chamber to dilute the UK Governments Brexit Bill to the point where the UK remains in the EU. Sterling, unsurprisingly, has weakened on the fudged outcome because the markets dislike uncertainty, and even after 102 weeks since the vote to leave the EU by the British people there’s nothing but uncertainty over the form of Brexit the UK Government will sign the country up to, despite the electorate being make a simple binary choice between two outcomes. Additionally here, there is uncertainty over Mrs May’s ability to cling on to power, and the writing is already on the wall. Even with the prospect of an FOMC meeting with a (future) US interest rate rise factored in Sterling is finding little comfort. The upside to this should be the capital inflows that stem from a more competitive exchange rate, but until the uncertainty is ended this will also be constricted. With a US rate rise factored in, and with Donald Trump’s apparent success at the Singapore summit with North Korea, we anticipate the demand for the dollar to stay strong.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more