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Will sterling rise or fall on the Supreme Court decision?

Friday, January 6, 2017 10:14
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(Before It's News)

The pound is fairly stable and range bound at present as markets keenly await the next direction of the Brexit. We are all eagerly awaiting the next bits of news over the Supreme Court decision and it is this which will determine the more immediate direction on the currency pairing. If you have a transfer to consider involving sterling understanding what is happening and being ready to react is the best way to capitalise on this news. At the moment we do not know when the decision will be released and this is keeping the market nervously on its toes.

Essentially upholding the previous High Court decision should see the pound rally but I think the gains will be limited. My personal expectation is for this to lead to sterling gaining up to 2% against its counterparts. If the decision goes for the government sterling will fall because I believe markets have very much priced in ‘good news’ that the previous decision would be upheld. If it falls in this scenario sterling could lose up to 4% as it becomes apparent a hard Brexit is more likely again. Sterling might retest the kind of levels we saw back in October last year.

GBPEUR Focus

After the Supreme Court decision attention will still remain on the Brexit and any good news for sterling will be shortlived in my opinion. There will still be many unanswered questions and as the resignation of Sir Ivan rogers, the UK’s Ambassador to the EU shows there is scope for further political casualties. Attention towards the end of the quarter will focus on the likelihood of Theresa May triggering Article 50 plus the Dutch and French elections. I expect GBPEUR could trade between 1.12 – 1.23 depending on the various outcomes here. If you wish to trade at these levels and wish to be kept informed of developments please email me on jmw@currencies.co.uk

GBPUSD Focus

The big news on the US dollar is the likelihood of further interest rate rises. A strong jobs report has given rise to expectation we could see further interest rate hikes soon and GBPUSD has dipped. I expect GBPUSD to trade between 1.14 and 1.25 in the coming weeks. As you can see I feel the US dollar will be strengthening.

If you have a currency transfer involving sterling and wish to optimise your position with some expert insight and information please contact me Jonathan on jmw@currencies.co.uk. I work as a currency specialist and have appeared on BBC News discussing Brexit and the impact on the currency markets. I would be very happy to hear from you and answer any questions and help you with your situation.

Thank you for reading, I hope to hear from you soon.



Source: http://www.poundsterlingforecast.com/2017/01/06/will-sterling-rise-or-fall-on-the-supreme-court-decision/

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  • Yeah, it’s going to fall badly if things are in negative way, but it’s really uncertain as per where things are going to work, so we just need to make sure we do it all very nicely and only then, it’s possible for us to bring out great revenue and will help us succeed. I do it all very well under OctaFX, as they are special by all means having small spreads at 0.1 pips for all major pairs while there is also 50% bonus on deposit which is use able too.

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