Market reaction during Theresa May’s Brexit speech

2

3

1

12.31pm

May wraps up

12.01pm

Parliament

gets a vote

11.47am

May starts

to speak

1 The pound had been recovering against both the euro and the dollar after falls overnight as the content of the speech was dribbled out to the press. The prime minister’s throat-clearing opening may have failed immediately to reassure the markets, until mention of ‘a plan’ seems to have convinced them there would be substance to follow.

 

2 The pound spiked shortly after a passage in which the prime minister emphasised stability and continuity, and set out clearly that parliament would get a vote on the final deal with the EU

 

3 With no suprises to come, the markets digested the impact of May’s speech, and concluded that a clearer sense of direction, and an emphasis on transition, made things less bad than they might have been. The pound is down since the beginning of the year, and more so since the referendum.

1.150

1.145

1.140

1.135

1.155

12.41

12.21

12.01

11.41

11.21

11.01

Value of £1 in euros

3

2

1

12.31pm

May wraps up

12.01pm

Parliament

gets a vote

11.47am

May starts

to speak

Pound continues

to rise after May’s

speech ends

1 The pound had been recovering against both the euro and the dollar after falls overnight as the content of the speech was dribbled out to the press. The prime minister’s throat-clearing opening may have failed immediately to reassure the markets, until mention of ‘a plan’ seems to have convinced them there would be substance to follow.

 

2 The pound spiked shortly after a passage in which the prime minister emphasised stability and continuity, and set out clearly that parliament would get a vote on the final deal with the EU

 

3 With no suprises to come, the markets digested the impact of May’s speech, and concluded that a clearer sense of direction, and an emphasis on transition, made things less bad than they might have been. The pound is down since the beginning of the year, and more so since the referendum.

1.150

1.145

1.140

1.135

1.155

12.41

12.21

12.01

11.41

11.21

11.01

Value of £1 in euros