The British pound has continued to push higher today after the last hurdle was cleared to enact Brexit, as well as signs that the Bank of England’s board members are divided over monetary policy.
At 12.43pm (GMT) the British currency was trading at $!.2357 up from $1.2293 in yesterday’s trading.
The Queen has now granted royal assent to the article 50 bill, paving the way for British Prime minister Theresa May to trigger article 50 and start Brexit negotiations to leave the EU.
As sigh of relief swept over the financial markets after the end of a brutal Brexit campaign, and many are glad that the process is over so the UK economy can get back to business,
"Brexit will allow us to begin the process of national renewal, enabling us to build a robust economy, more cohesive communities and to make politicians more accountable to the public” noted Labour MP Gisela Stuart,
"In the weeks and months ahead, I would urge politicians from all parties to work together to help ensure we make the most of the opportunities that leaving the EU will provide." she added.
Also, boosting the pound today was a shock split in the Bank of England’s policy making team, with Bank of England policymaker Kristen Forbes unexpectedly voting for a rise in interest rates, making her the odd one out.
This marks the first time in nearly a year where the banks board members have not reached a unanimous decision, and some predict that in the nearest future some other members may call for a tightening of monetary policy,
"There were signs that other members may be close to voting for a tightening in monetary policy, given that 'it would take relatively little further upside news on the prospects for activity or inflation for them to consider that a more immediate reduction in policy support might be warranted'. said Ruth Gregory, UK economist at Capital Economics,
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|