Brexit latest

The UK government’s recent decision to finally trigger article 50 and formally start the EU exit process and negotiations has not had any substantial impact on sterling which remains weak and continues to fluctuate within a tight range of $1.21 to $1.25. Sterling is also little changed vs the euro in the last few weeks, hovering around €1.15-€1.17. However, after the early optimism following the Brexit vote last June that the UK economy and consumer spending would remain resilient, more recent economic indicators paint a less rosy picture as UK business investment has stalled and inflation is starting to creep up, partly driven by a weaker sterling. It is now very clear that the UK’s exit negotiations with the EU will be prolonged, complicated and difficult and this will continue to weigh on the currency until some clarity emerges regarding the UK’s ability to negotiate new and improved trade deals with other non-EU countries.