Yesterday was a rough day for the pound as it became increasingly clear that the Prime Minister, Theresa May, was living on borrowed time. Following the almost universal rejection of her ‘new’ EU withdrawal deal, pressure mounted on her to resign.
As policymakers voted unanimously to leave interest rates on hold the mood towards the pound remained muted, even as the BoE expressed confidence in businesses’ ability to withstand potential Brexit disruption.
However, GBP exchange rates came under significant pressure as EU leaders looked set to reject Theresa May’s proposed three-month delay to the Brexit deadline.
Rising odds of a no-deal Brexit weighed heavily on the pound, overshadowing a better-than-expected uptick in February’s UK retail sales data.
The pound recovered some of its lost ground on Friday, though, after the EU agreed to extend the exit deadline until at least 12th April.
If Theresa May is unable to secure parliamentary backing for her proposed Brexit deal in a third ‘meaningful’ vote, however, GBP exchange rates could swiftly return to the back foot.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)