Well we were on course yesterday for GBP’s biggest one day loss vs the USD since November 2018 – a massive 1.5 percent against most of the majors! Thus most of the gains we saw on Friday morning after the election results have been completely diminished.
ITV reported last night that BoJo will legislate via an amendment to the Withdrawal Agreement Bill as soon as Friday to “legally prohibit” any further delay to the UK’s departure from the EU. A vote is expected as soon as the bill returns to parliament, likely on Friday, after a ceremony led by the Queen.
What does this mean for GBP over Christmas and the New Year?
Expect GBP to continue to weaken. Now BoJo has a captive audience in the House of Commons the chances of a ‘harder Brexit’ are far greater than they were last week. If you’re a seller of GBP we’d encourage looking at covering off some of your exposure now for Q1 2020.