No Relief for Sterling Stymied by Brexit



Sterling is back under Brexit-related pressure, presently showing declines of just over 0.5% against both the Dollar and Euro, and by 0.8% in the case against the outperforming yen. Cable has printed a low of 1.2756, which reverses most of the rebound gain the pound saw yesterday, with the post Powell high of 1.2849. The BoE’s warning of a significant negative impact on the economy in the event of a no-deal Brexit, along with Chancellor Hammond’s remarks that all versions of Brexit will leave the economy worse off, have been weighing on the currency. This comes with Brexit remaining clouded in uncertainty, despite the EU and UK government having shaken hands on a deal. What does look clear, at least at the moment, is that that deal will be voted down at the December 11 parliamentary vote, with the Labour opposition, Northern Ireland’s DUP party (the kingmakers of the Tory-led minority government), and numbers of Tory party members (mostly from the Eurosceptic Brexiteer cabal) set to vote against the government. Mrs May plods on in the believe that she can wins sceptics over (after all 2 weeks is a life time in politics) or in the knowledge that she and Barnier have something up their sleeves, knowing that the likelihood of the 585-tome passing parliament was extremely slim.

Click here to access the HotForex Economic calendar

Stuart Cowell

Head Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.