Yesterday saw one of the most positive days in a long time for Sterling with the GBP/EUR rate spending the whole day in the 1.13’s reaching 1.136 at the peak. This morning the Sterling Euro rate has moved beyond yesterday day highs sparking hope that a return to the 1.14’s and above may happen.
Earlier this week the reluctance of Members of the Bank of England to provide positive insight into a future interest rate hike saw Sterling crumble to the 1.11’s against the Euro. Now that there has been a resurgence for the GBP/EUR it does beg the question how much higher could the rat go especially if the interest rate rhetoric returned.
The Great Repeal Bill
One of the key topics over the next few weeks will be the Great Repeal Bill which will essentially transfer over 10,000 EU Laws into UK Laws. Whilst this seems a fairly obvious process and would mean the same rules apply as under the EU, there is a major conflict rising in the House of Commons. The Conservatives Ministers are being challenged as they’re in a position to change laws without any scrutiny from Parliament. There is also concern from the devolved Governments as to how they may be able to influence laws, with the UK Parliament able to dictate what changes.
In short without digging to deep, there could be further uncertainty. If all of the changes in legislation are required to be voted on that could take years to complete the process, meaning come March 2019 the UK my not have a set of laws. Whilst there is not expected to be a vote until the Autumn, once the Bill is revealed it will be clear to find out what the challenge ahead will be for the Conservatives.
If you have any questions with regards to my forecast above please don’t hesitate to contact me. I would be more than happy to discuss your requirement and provide a strategy that will work for your unique needs. I may also be able to offer a potential method of completing the transfer. Please send me a brief description of what you’re looking to do at email@example.com