This week’s votes will determine the fate of the Pound

After a relatively quiet couple of weeks, we expect some volatile trading in  Sterling this week

The Government's withdrawal agreement is likely to be rejected again by a large majority in Parliament Tuesday. We expect Parliament to then vote the next day to reject a no-deal outcome, and request an extension of Article 50 on Thursday. If we are correct, we should see a significant rally in the Pound. However, the uncertainty surrounding this path to an extension is unusually high. In particular, the last step in the sequence above (the request for an extension) is far from guaranteed, even if the first two steps take place as we expect.

Markets are braced for a very volatile week.

GBP/PLN (04/03/19 - 11/03/19)

Source: Thomson Reuters Datastream Date: 11/03/19

Author: Enrique Diaz-Alvarez, Chief Risk Officer at Ebury

Keywords Ebury