Currency Zone

What’s next for Brexit and what does it mean for your finances?

Is Theresa May on the precipice of a Brexit triumph or resignation? Possibly both. As Britain, the European Union and the rest of the world hold their breaths, here’s a short overview of recent Brexit events, what to look out for in the coming week, plus some options for your money.

What’s happened?

Citing a convention dating back to 1604, Speaker of the House of Commons John Bercow ruled out another vote following two rejections of the same deal. At the time, GBP/USD dipped below 1.32 in response to the votes carried out 12-13 March.

The week commencing 25 March has set up for a number of movements on the Brexit front.  Tuesday 26 March was considered as a possible day for the third meaningful vote (initially planned for 13 March). This was subject to Bercow conceding that May’s deal is sufficiently different enough to allow a third vote.

On Wednesday 27 March, Parliament were given eight options as an alternative to Brexit, which included leaving the EU without a deal, a second referendum and cancelling Brexit altogether. Any option that gained the support of more than half of MP’s would be debated the following week as an alternative to May’s deal.

What to look out for next

None of the eight alternative options provided on Wednesday gained MP majority, which means MP’s will now narrow down the list of options and continue to hold more votes Monday 1 April

Indicative votes are not legally binding however, so we don’t know how the EU will respond to any vote that gains majority. Britain now has until April 12 to make a decision or end up leaving the EU without a deal altogether.

Also see: How to buy property abroad

If the third meaningful vote has not taken place by Thursday 28 March, this was another possible date to vote, however, Bercow has since poured cold water on May’s attempts saying the deal needed to be significantly different.

The expected leave date for the UK (and that which is currently written into law) is Friday 29 March. Although May has said that she will pass legislation to remove that legal binding in the meantime.

Take control of your finances

As the pound responds in turn with recent developments on the Brexit front, it’s likely that volatility will ensue into the foreseeable future. 

In OFX’s recent Currency Corner video, currency expert Hamish Muress explains that if a long extension is granted from the EU (which is one of the alternative options to May’s deal), investors and businesses are given two years to plan and prepare. A long extension could also see the GBP rise to 1.35 against USD, which has many taking advantage of OFX’sLimit Order option.

If you’re not sure of what rate you want exactly, you can also take advantage of favourable movements using aForward Exchange Contract. This means you can lock in a rate and transfer at any point up to 12 months. 

OFX also offers tools in understanding market movements throughDaily and Weekly Commentary, and rate monitoring tools like Rate Alerts, so you’ll be notified of favourable movements without committing to a transfer right away.

Register with OFX today to get started

Published by