Economy

The pound is drifting lower ahead of Article 50 being triggered

The pound is drifting lower ahead of Article 50 being triggered

Article 50 of the Treaty of Lisbon became law in December 2009 and stipulates that "any EU Member State may decide to withdraw from the Union and it basically provides a path for the process by which the United Kingdom will exit the EU".

Prime Minister Theresa May's keynote speech at Lancaster House on January 17 - ironically the very venue in which Margaret Thatcher set out the country's European Union membership in 1984 - sends the pound reeling to 1.1989 as she reveals her aim to prioritize immigration and border control over single market access.

While it has made goods from abroad more expensive - filtering through to shop and other prices - it has also resulted in United Kingdom produce becoming more attractive overseas.

EU President Donald Tusk also delivered a statement soon after Theresa May and expressed his hope that the United Kingdom would be a "close partner" after Brexit.

"With actual negotiations with the European Union not starting ahead of May/June, and as the BoE continues to link its policy stance to long-term uncertainty, we believe rate expectations and the pound will remain capped", Credit Agricole strategists wrote in a note to clients. There will be a two-year negotiating window before Britain actually leaves the bloc.

Australia's data calendar is also lacking, although forecasts of a minor uptick in this afternoon's US GDP data for 2016 Q4 could pressure the Australian dollar lower and give the pound a chance to climb.

Kim Kardashian Wants to Have a Third Child
She previously considered using a surrogate for a third child after doctors told her another pregnancy might be risky . Speaking at the time on the American show, Kim's 61-year-old momager, Kris Jenner, said: "You could bleed to death".

The moves take it to the top of a $1.20-$1.27 range it has held since October. It would need to break $1.20 or $1.27 to get some clear direction.

The Euro may also stumble later today following the release of Germany's latest CPI figures, with inflation expected to have slid from 2.2% to 1.9% in March thanks to weaker oil prices.

With the week's biggest United Kingdom news having passed without serious incident, the Pound may still be weakened on Thursday and Friday when negatively-forecast confidence and GDP data comes out.

However, overall uncertainty about the Brexit negotiations is likely to dent buying sentiment in the pound. Fellow members Kaplan and George stuck both struck a slightly more cautious tone, while Chair Janet Yellen disappointed investors by failing to touch on monetary policy.

Meanwhile, the EU's demand for a £50 billion Brexit bill is already adding to the potential complications in the early stages of the negotiations.

"Really it has been a dollar story today, but just the weight of the short positioning and its relative illiquidity have made sterling the outperformer along with the yen", said Nomura analyst Jordan Rochester.


  • NCAA referee is target of death threats after Kentucky loss

    NCAA referee is target of death threats after Kentucky loss

    Kentucky coach John Calipari didn't help matters by targeting Higgins and his colleagues in the postgame news conference. Some fans trashed the review section of Higgins' company Facebook page, writing false and damaging messages.
    Sean Payton says Saints won't sign Malcolm Butler to offer sheet

    Sean Payton says Saints won't sign Malcolm Butler to offer sheet

    The Saints aren't looking to replace Zach Strief this year at right tackle, but I think that is the plan for a year down the road. Both of these require him to sign his tender, as the Patriots can't talk with other teams on a trade until his tender is signed.
    Dont'a Hightower Re-Signs with New England Patriots on 4-Year Contract

    Dont'a Hightower Re-Signs with New England Patriots on 4-Year Contract

    Which is why Hightower returning to New England felt like a coup d'etat to many keeping tabs on the situation. He started all three of the team's playoff games and recorded a sack in the team's Super Bowl victory.
  • Trump re-assigns White House deputy chief of staff to outside group

    Trump re-assigns White House deputy chief of staff to outside group

    One of its co-founders, Rick Gates, left last week amid renewed reports about his firm's past work on behalf of Russian clients. A senior White House official insisted that Walsh was "not being fired". "No one can fix this problem better than Katie Walsh".

    Final Four excitement sinks in for Gonzaga trailblazer Hachimura

    Humphries scored eight during a three-minute stretch that gave Kentucky a 64-59 advantage with five minutes remaining. Oregon , which played won the very first national title game, goes 78 years between national semifinal appearances.
    YouTube Loses Major Advertisers Due to Distasteful Videos

    YouTube Loses Major Advertisers Due to Distasteful Videos

    In Alphabet's latest earnings, advertising revenue was $22.4 billion, while its total revenue for the quarter was $26.1 billion.
  • Trump attacks reporter for 2005 tax return leak

    Trump attacks reporter for 2005 tax return leak

    MSNBC claimed that it is protected under the First Amendment because it published material crucial to public interest. But in a Twitter message posted just before 7 am, the president appeared to backtrack from that acknowledgment.
    BlackRock cuts fees and jobs; stockpicking goes high-tech

    BlackRock cuts fees and jobs; stockpicking goes high-tech

    Wiseman said: "We're in really rough seas, but BlackRock is an aircraft carrier". "The active equity industry needs to change". The revamp marks Blackrock's biggest attempt to rejuvenate its actively managed equities business as investors shift to ETFs.
    Trump's lawyers: 'Apprentice' contestant can't sue president

    Trump's lawyers: 'Apprentice' contestant can't sue president

    Jones and determined unanimously that no man is above the law and that includes the president of United States", Allred said . He said during the final presidential debate that the women just wanted "10 minutes of fame", according to court documents .
  • Lyft Makes Donating As Easy As Rounding Up

    Lyft Makes Donating As Easy As Rounding Up

    Users will not be able to choose to donate on a ride-by-ride basis, but they could opt out entirely at any time if they want. This program will be available to passengers within the next few weeks.
    Next World War? North Korea May Conduct Underground Nuclear Test Soon

    Next World War? North Korea May Conduct Underground Nuclear Test Soon

    The Vietnamese woman and Indonesian Siti Aisyah allegedly smeared banned chemical weapon VX nerve agent on Jong-nam's face. Ambassador to the United Nations Nikki Haley previously made similar comments, stating , "This is not a rational person".
    Trump supporters, foes spar at Southern California rally

    Trump supporters, foes spar at Southern California rally

    The President's vision to Make America Great Again doesn't appear to be going to plan after a fight erupted at a pro-Trump rally. "It was a quick reaction, there was about 12 of them", organiser Jennifer Sterling told the Los Angeles Times of her defenders.