U.S. equities opened lower on Monday and the British Pound touched a 7 week high against the dollar ahead of Britain officially withdrawing from the European Union that is expected on Wednesday by British Prime Minister Theresa May who needs to trigger the UK’s withdrawal from the EU by invoking Article 50 of the Lisbon Treaty.
The British Pound is currently up +1.02 against the U.S. dollar.
By invoking Article 50, the UK has 2 years to complete formal negotiations with EU member states that includes new trade deals before their withdrawal process is finalized.
Based on the terms of Lisbon Treaty, there is no official negotiation between the UK and the other states until Article 50 is invoked.
Investors are more cautious on Monday following the decision from House Republicans on Friday to not support new healthcare legislation that repeals and replaces the Affordable Care Act, also known as Obamacare, and install the American Healthcare Act which President Trump endorsed.
U.S. equities have rallied nearly 10 percent during the so called Trump rally that is largely based on expectations that President Trump can deliver with his campaign promises to offer deep tax cuts and lower regulations.
Following the decision on Friday in the Republican controlled House of Representatives to move away from the American Healthcare Act, President Trump’s agenda is in question as is his ability to deliver his campaign pledges to overhaul the U.S. economy through deep corporate tax cuts, a new healthcare system, and lower regulations.
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