Theresa May’s Brexit withdrawal agreement was rejected for a second time last night – and the pound strengthened as hopes of an extension to Brexit – or even a revocation – rose. First, there is a vote today on the House rejecting the possibility of leaving without a deal, which looks relatively likely to pass. If it does, then the second vote, on Thursday, will be on an extension to Article 50.
We’re now in uncharted territory, and no-one can really predict what’s going to happen. Make sure to lock in your exchange rate today with a forward contract by calling your Personal Trader on 020 7898 0541.
In the US, core inflation only rose a modest amount, putting pressure on the dollar. We saw it weaken slightly against the pound and euro. The poor results are making it look likely that the Federal Reserve will hold off from increasing interest rates this year.
Today, we’ll see the Spring Budget in the UK and a raft of economic releases in the US, including mortgages, but the real story will be Brexit.