Ready, Steady, Brexit!
- Theresa May Secures Power to Trigger Article 50
- Brexit Puts Scottish Independence Back on the Table
- Rutte goes head to head with Wilder
Theresa May secures power to trigger Article 50
Last night we saw Theresa May's government fight off any rebellion to reject the amendments from the House of Lords by 335 to 287 votes.
The rejection of the amendments gives Theresa May the green light to trigger Article 50. Once the Article 50 is triggered, the Europe Union then starts to discuss the 2 year Divorce Negotiations. Indications are that May will trigger Article 50 in the last week of March. This comes after Brexit Secretary David Davis stated 'the vast majority of the people want the prime minister to get on with the job in hand with the minimum number of strings attached'.
The initial market reaction has seen sterling being sold-off, as we have seen a drop of 1% against a basket of currencies. While it's unclear how the markets will react when May finally triggers Article 50, it is clear is that we should expect to see volatility
Brexit puts Scottish Independence back on the table
Scottish First minister Nicola Sturgeon said she plans to start the legal process for another Scottish referendum to be held in 2019. The announcement comes as the UK government prepares to trigger Article 50 and start Brexit negotiations.
Sturgeon and her Scottish National Party have claimed that the Scottish people are being ignored by the UK Government and an independent Scotland is the only way to get their voice back. The Scottish Government have been pushing for an EU Trade agreement that allows free trade. With the noises from Whitehall that ‘No deal is better than an bad deal’, this could cause some animosity between the Scottish and UK Governments. Theresa May has stated with this referendum Scotland faces ‘more uncertainty and division’ when this a time that the UK should be working together to build a strong future.
Sturgeon is looking to address her party at the weekend as she hopes to gain the support for a referendum but she will still need approval from the UK government to launch the formal process. It looks like the UK’s political uncertainty is here to stay.
Rutte goes head to head with Wilder
Last night we saw the first televised debate between the Dutch Prime minister Mark Rutte and populist Freedom leader Geert Wilders, just 36 hours before the polls open.
Both candidates questioned each other’s creditability and integrity as they faced off. Wilder accused Rutte of breaking promises made to the people of Holland at the last election in 2012. Rutte claimed Wilder was untrustworthy after he walked away from supporting Rutte’s first minority cabinet in 2012.
Three opinion polls after the debate have showed no real change, with Rutte still ahead of both Wilder and the European Union Freedom Party. Rutte did make it very clear in the debate that he would not be entering into a coalition with Wilder. This leaves the election still wide open with two days to go.
Western Union Business Solutions has based the opinions expressed herein on information generally available to the public. Western Union Business Solutions makes no warranty concerning the accuracy of this information and specifically disclaims any liability whatsoever for any loss arising from trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon.
Deliver the Daily Currency Market Analysis to my Inbox
Published five days a week, this newsletter provides day-to-day trends and activities affecting the market in easy-to-understand snapshots.