Sterling edges up as UK government published Brexit impact reports
There is some hope that sterling may be on an upward trend with the recent response from the markets that the UK government will be releasing the impact reports it has compiled regarding the expected effects on different industries after Brexit.
Brexit secretary David Davis bowed to pressure from the haouse of Commons Brexit committee and agreed to release to them the 58 impact reports that comprise of the governments views on how certain industry sectors will be impacted by Brexit.
However, some members of the committee are concerned that sections of information in the reports has been redacted, with negotiation concerns cited, and worries they contain commercially sensitive information.
Philip McHugh of Currencies Direct says of the development: “The pound was able to advance steadily against the euro yesterday, although initial GBP gains against the US dollar faded away by the close of trading.
One fact that excited markets yesterday was the admission by a government spokesperson that Downing Street would comply with the recent Parliamentary vote demanding the release of 50+ analyses into the impact of Brexit upon the UK economy.
Ever since the referendum, the government has battled accusations that it is operating opaquely with regards to Brexit, having failed to satisfy the numerous demands for clarity in the past.
The Brexit impact reports could therefore provide business leaders and markets with the kind of information they have long been looking for, which could boost Sterling as the private sector will be able to better prepare for a split from the EU, while markets will have more information with which to accurately value Sterling.”
Currency fluctuations have been a hallmark of the sterling experience since the referendum in 2016 with analysts craving detail to make sound judgements on the value of sterling. For ecommerce retailers trading overseas, weakness has been a problem for some and a boon for others but certainly more stability will be welcome.