Sterling begins 2019 at an interesting juncture.
While there is plenty of pessimism already priced in, there are also some clear risks that lie ahead.
The fact is no one really knows for sure how Brexit will play-out from here.
The bookmakers are always an interesting source of insight as people back their opinions with their money.
Interestingly, the odds show that the UK is highly likely to go ahead and leave the EU this year but also that Jeremy Corbyn is most likely to be Britain’s next Prime Minister!
If both of these significant events unfold then Sterling is in for a volatile ride in 2019.
It seems currency markets still crave the idea of Brexit not materialising. Any news that suggests a soft exit or no exit at all, is taken as good news for Sterling.
But is this realistic? Or is it just the City of London desperately trying to hold on to its dominant position in European financial markets?
What we do know is that some major decisions are fast approaching.
The Parliament’s Brexit vote is scheduled for the week of 14th January (next week). Surely, this is the do-or-die moment for Theresa May’s premiership?
For those with GBP exposure, it’s important to keep up with the latest news and events.
Please get in touch as we can help structure a plan that mitigates your currency risk.
Happy New Year,
Tony Redondo
Key Currency
