It can be difficult to keep up with all the news surrounding Brexit at the moment, so the currency experts at OFX have put together a simple update including some key dates to keep in mind, and some tools for managing market risk during such tumultuous times.
UK Prime Minister Theresa May’s withdrawal agreement (backed by the EU) was rejected in the UK parliament on January 15, 2019 and May was sent back to the EU to renegotiate. Since then, the EU leaders stated that the withdrawal agreement cannot be changed but they are open to re-writing the political declaration of offering some reassurances in a separate document.
What to look out for next
In the meantime, save the date(s) for these following events, they’re likely to be influential to market movements in the coming month.
March 12th – May has set the deadline for a vote on her second revised (EU backed) Brexit deal.
March 13th – In the event that May’s deal is rejected on the 12th, another vote has been scheduled for the 13th with the intention of blocking out a possible ‘no deal’ altogether.
March 14th – Assuming the no deal gets rejected then parliament will vote on delaying Brexit and extending Article 50, or risk leaving the EU without a deal only 16 days before the pre-determined exit day.
The skepticism in the markets around a no-deal Brexit has since appeared to have decreased and this saw the Pound soar to a five-month high against the US dollar. Although the Pound seems to be moving in a positive direction, investors are still cautiously monitoring any headlines on Brexit as the final date to exit the EU approaches with risks of a no-deal Brexit lingering.
What about second referendum rumours?
The opposition’s party opened the possibility of supporting a second referendum and the GBP soared in response. However, whether a second referendum will actually happen will depend on what happens between March 29th and the hypothetical extension date of July 1st, 2019.
May has opposed the idea, saying that it will undermine faith in democracy and divide the nation. Polls locally are suggesting that support among voters is now more strongly in favour of remaining in the EU rather than leaving.
Take control of your finances during volatility
While the Pound is currently moving in a more positive direction, it might not stay that way. If previous events are a given, market volatility is to be expected and it’s best to take advantage of any favourable market movements using the range of tools OFX can offer.
Limit Orders – Book a transfer at your target rate and we’ll contact you to complete the process once your target rate is reached.
Forward Contracts – OFX’s Forward Exchange Contracts allow you to book transfers between two days and 12 months from today.
Market News – Sign up to receive the latest market commentary from our currency experts direct to your inbox daily or weekly.
Rate Alerts – Have you got a particular rate in mind? Let us know by signing up to our market rate alert option and we’ll notify you when that market rate is reached. The rest is up to you.
IMPORTANT: The contents of this blog do not constitute financial advice and are provided for general information purposes only without taking into account the investment objectives, financial situation and particular needs of any particular person. UKForex Limited (trading as “OFX”) and its affiliates make no recommendation as to the merits of any financial strategy or product referred to in the blog. OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this blog.