Why the pound could be heading for one more dip
Daryl Jackson, News Editor
9 Feb 2017, 10:50 a.m.
There's a prediction that the pound could head for just one more final dip as article 50 –the process of starting to leave the EU – is finally triggered at the end of March.
It’s thought that the start of the countdown to Brexit - and as the European Union formally responds and sets out its negotiating position - that could prove to be the low for the pound which could bring about an opportunity for more investment in the currency. It’s predicted that the formal triggering of article 50 will mark the final phase of sterling’s decline and will mark the final low point for the pound this year.
Last night, MPs gave the green light to the Brexit process. The Bill was approved on its third reading by 494 votes to 122 which means that the Prime Minister can now start two-year talks with the EU. There was a bit of internal disorder within the Labour party. The leader, Jeremy Corbyn, lost Clive Lewis from the front bench. 52 of Corbyn's MPs went against his bid to vote with the government.
This will now go before the House of Lords but it’s expected to go through the upper house without issue, meaning that the process of leaving the EU can begin at the end of next month.
In the last week, as far as gold is concerned, there’s been a decent move in the price towards the upside. That could be because of the weakness of the US dollar but also because of the political uncertainty in Europe.
Fiona Cincotta, from City Invest, says gold pushing towards $1300 an ounce is a “very real possibility” as investors navigate through the current political uncertainty. Gold has risen for five consecutive trading sessions and is currently hovering at a three-month high.