Brexit concerns continued to weigh on the Pound yesterday, with it falling to a two-week low against the Dollar. The Government announced that there will be a vote to cover the withdrawal arrangements and also the future relationship with the EU. Further, that the final agreement will need to be approved by both Houses of Parliament. The Euro remained under pressure as Europe’s upcoming elections continue to haunt the single currency union.
In other news, Bank of England member Kristen Forbes helped support the Pound yesterday. Hawkish comments from Forbes pushed GBP/USD up over 1% as she hinted that rates could start to rise in response to the weaker Sterling. Forbes said “In my view, if the real economy remains solid and the pickup in the normal data continues, this could soon suggest an increase in Bank Rate”. Sterling continues its surge as the hawkish comments filter through to the market.
Across the pond, US President Donald Trump’s immigration plan continued to cause a stir. An appellate court in San Francisco heard arguments from Justice Department lawyers yesterday demanding the reinstatement of a travel ban on nationals from seven Muslim-majority countries. However, President Donald Trump continues to defend the ban the only way he knows, on Twitter.
A busy day for central banks and governing bodies. The European Commission post their latest economic forecasts for the single currency union. The report will include economic forecasts for EU member states over the next two years and therefore could spark some volatility into the Euro if these are to change drastically from November’s release. In the evening, the Reserve Bank of New Zealand announce their latest rate decision, with rates expected to remain at 1.75%.