Yesterday, cabinet ministers agreed that no-deal planning must be ramped up and implemented across government. Measures include reserving ferry spaces for supplies and putting 3,500 troops on standby to deal with any disruption. Downing Street confirmed that no-deal planning is now the main priority of departments and advice on preparing for a no-deal Brexit would be sent to all UK businesses.
British citizens will also be told how to prepare through a range of channels that could include adverts on TV and posts of social media. Quite what these preparations will be is currently unknown, but given the work involved, civil servants could be taken off important domestic priorities in order to concentrate their efforts on ensuring the country doesn’t come to a standstill.
The Shadow Brexit secretary, Sir Keir Starmer, told MPs in his speech in the Brexit debate that May would never authorise a no-deal Brexit. It could well be a ploy by May to get MPs to support her Brexit proposals in the face of a no-deal, but there is no way of knowing. It also is not worth second guessing any of these things; far better to protect your budget against any sterling volatility through careful planning with your Personal Trader. Forward contracts are one way of locking in an exchange rate and protecting your exposure to any volatility in the coming weeks. Speak to your Personal Trader on 020 7898 0541 to find out more.
In America, Donald Trump appeared to back down on his threat to shut the government if he did not get the $5 billion for his border wall. The Press Secretary, Sarah Sanders, said that the government has come up with other ways of finding the money. She added that the White House did not want to shut down the government. It is not known what the other ways of finding the money allude to.
Today’s highlight is the Federal Reserve’s interest rate decision which is due around 7pm BST. It is widely expected that rates will be hiked by 25 basis points to 2.5% and so the accompanying press conference could be the greatest source of drama. Should policy makers strike a more dovish tone than they have in recent times, we could see some dollar weakness. The markets will be looking for any allusions to 2019 policy and how many rate hikes we can expect in the future.