Sterling began the week by weakening against the euro and dollar as political uncertainty continues to exert pressure on the pound. It started the day by making some small gains before dropping to its lowest level against the dollar since the end of October. It did manage to bounce back off the lows, but it is clear that concerns are growing over the meaningful vote on Theresa May’s Brexit proposals; investors fear the bill won’t get through parliamentary approval on 11 December.
The British Prime Minister said she would still be in her job in a fortnight, which was no doubt an attempt to end speculation that she would resign if Parliament rejects her proposals. It is widely expected that the bill will be rejected the first time around, so the real question is whether the margin of victory for those opposed will be slight or more pronounced. If there is a landslide vote against it, then May’s bill will be dead in the water.
With several possibilities over the meaningful vote, we’ve had a look at the major scenarios and their impact on overseas property buyers. The message is clear: don’t leave your currency to chance. Speak to your Personal Trader on 020 7898 0541 to find out more about forward contracts.
Wall Street rallied on reports that there has been a breakthrough in the trade war between the US and China. Trump hailed what he called a BIG leap forward, saying that the trade truce can be a win for both sides of the negotiations. Washington has agreed to postpone the increase in tariffs from 10% to 25% by 90 days, while China has said it will import more US products. This will likely narrow the US trade deficit with China and, while the announcements so far only signal temporary relief from the trade war, they do buy both sides more time to negotiate.