MPs Takes Back Control - Sterling Rallies
This week currency made its biggest two-day gain against the US dollar since last November, bursting back above $1.23 today in a 1.3% jump.
This followed Parliament seizing control of Parliamentary Business. UK Parliamentarians voted to gives MPs the chance to introduce a law postponing the UK's departure from the European Union until 31 January. Signs were clear by late afternoon, today, that the House of Lords would also allow the Bill to sail through. The only thing remaining is Royal Assent on Monday, to rubber stamp it into law.
The law provisions are that if by 19 October MPs have not approved a new deal, or voted in favour of a no-deal exit then the government must request an extension of the Brexit deadline date. A report in the Times newspaper states that the MPs who proposed this bill did so after secret talks with EU leaders and proposed the law after they had received assurances from EU leaders that such an extension would be granted.
The Monthly GDP data release for the UK (due at 9.30am Monday) represents a slight risk to Sterling strength. Also, unless something materially changes politically, the prospects for Sterling look good next week.
To discuss how the above may affect you, please contact your Currency Dealer at Heritage Pay on +44 (0) 203 858 7274.
See you next week!