Foreign Exchange Daily Market Update 14/01/19

Mon, January 14, 2019

Sterling could slip another 3%.

Sterling could fall by more than 3% to $1.24 by the end of March even on the most favourable Brexit outcome, the economy will be worse off than if “remain” had won the referendum.

Whatever form of Brexit arrangements is finally finalized, even the most market-positive outcomes would leave the economy weaker than we were in May 2016, A senior currency strategist stated.

After falling to $1.24, sterling could remain around that level until the middle of the year with any positive news unlikely to provide anything other than a temporary bounce.

Theresa May’s Brexit plan faces an almost certain defeat in a House of Commons in tomorrow’s vote, leaving open the prospect of the U.K. leaving the EU at the end of March with no new trading arrangements in place. Brexit-backers say May should go back to the EU and renegotiate before putting a revised agreement to a vote, though Brussels has indicated there’s little room for compromise.

Despite Brexit uncertainties, sterling has gained 0.6% this month to trade at $1.2827, after sliding 5.6% last year.

Data to look out today.   

Not much data due out today.

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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