After what was one of the more turbulent weeks of GBP trading in recent memory, UK Parliament will today vote on amendments to the, hugely controversial, Internal Markets Bill. GBP will once again be holding its breath for the result of the votes today.
Since the start of September, sterling has lost over 4.8% against the US dollar and registered a loss of over 4.5% against the euro, with the largest portion of the losses being recorded in the latter half of last week. The relationship between the UK and Europe have significantly deteriorated, with the EU giving their counterparts an ultimatum of potential sanctions, should legislation be voted to be amended. In what form the sanctions could look like is currently unknown.
Leading the revolt against Prime Minister Boris Johnson, is the former top leader legal advisor when the Withdrawal Agreement was signed. Former Attorney General, Geoffrey Cox, has been quoted in The Times as saying the amendments to the legislation will bring “unconscionable” harm to the international reputation of the UK. Current Justice Secretary, Robert Buckland, told the BBC he would resign should the outcome of the vote mean Britain will break international law.
A light day of data kicks off this trading week, before a host of releases later in the week. On Thursday, the Monetary Policy Committee will meet to vote on the UK’s interest rate, potentially leading to more volatility in GBP.
Have a great day.
Author: Jack Nicholls, Relationship Manager
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