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GBP: sterling escapes major volatility

By Michael Cooper March 31st, 2017

News headlines over the past week have been dominated by the historic day that kick-started the process of ending the UK’s four-decade relationship with the EU. The event itself was largely priced in. However, the political rhetoric has made markets anxious. The conciliatory tone of Theresa May’s letter to the EU was why the pound saw a modest gain though.

Now the journey down the ‘Yellow Brit Road’ begins. It’ll result in the UK befriending allies and there will certainly be many trials and tribulations along the way. Today Tusk is expected to publish a document that outlines how the Brexit negotiations will be carried out.

Later today we’ll also see some key economic data, which will give us another opportunity to assess the housing market. Nationwide will be releasing its house price index. This will be followed by the current account and final reading of the GDP figure for the fourth quarter of 2016.