Foreign Exchange Daily Market Update 15/01/19

Tue, January 15, 2019

Sterling could drop off if May loses by more than 100 votes.

Sterling could hold its ground if Theresa May’s Brexit deal is defeated in Parliament by 100 votes or less, as the market would then eye the odds of the prime minister seeking a second vote.

May’s unpopular pact with the EU will be put to the House of Commons tonight, where she will need most lawmakers to vote favourably for the agreement to be approved. A loss by more than 100 votes could raise risks including a leadership challenge by the opposition, that would send sterling plummeting.

• If May is defeated by more than 220 votes, sterling could fall to $1.225
• A loss by a margin of 20 to 100 votes, sterling could rally to $1.3350; a loss of just 20 votes could see sterling rally with potential to reach $1.35
• Call for a second referendum or a leadership challenge by the labour party.

Sterling traded at 1.283 this morning against the dollar, The Pound traded at 1.122 against the Euro.

Data to look out today.   

GBP Brexit Vote in UK Parliament (Due Around 19:00-21:00)

15:00 EUR ECB’s Draghi Presents 2017 Annual Report in Strasbourg.

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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