UK: House of Lords holds a final debate on Article 50 - SocGen

Kit Juckes, Research Analyst at Societe Generale, explains that the UK’s House of Lords holds a final debate, and vote, on the Article 50 Bill this morning.

Key Quotes

“On least chance to decide whether to throw a temporary spanner into the works. The focus will then move on to the Budget tomorrow and the triggering or Article 50. I can see no good news there for sterling, even as I concede that 1) the pound’s already weak and lot of bad news is in the price and 2) the debate is about what the long-term impact will be of triggering article 50, not whether it happens or not. Still, if the 10year real yield gap between the US and UK widens beyond 240bp or so, which seems likely when/if US 10s get through 2.50, a re-test of GBP/USD 1.20 looks very likely.”