Sterling dips after Brexit vote cancelled

Hi everyone,


Sorry to deliver more bad news, but today Sterling has taken another big hit after Theresa May postpones tomorrows Brexit vote. The Pound has fallen from £-$1.2750-1.2500 / £-€1.1160-1.10, over a 1% drop in today's trading

The reason for the vote being cancelled was because it "would be rejected by a significant margin". May has said that many MP's have backed the deal, but the concern over the Irish backstop was a big stumbling block. She intends to address MP's concerns over the next few days and the vote itself has to happen by the 21st January. 

Jeremy Corbyn was urging the Prime Minister to stand down in Parliament today with Lib Dem leader Vince Cable backing the suggestion. Corbyn's comments of the Government being in "chaos and disarray", seemed to echo around the commons today. It has been a brutal round of questions for Theresa May and we are back to a no-deal probable scenario once again.

We have seen a slight recovery since the PM started speaking and we expect some more of the loss to be clawed back tomorrow. What happens next will change day by day, but right now consensus remains negative and if we push below the psychological barriers of £-$1.25 / £-€1.10 things will start to take a real dive.

Data-wise this week we are light from the UK, but plenty of important events from the US to look out for if trading the strong $. We currently sit a 20-month low versus USD.


 

 

 

Upcoming Data
 

 

Tuesday, 11th December, 2018

 

09:30 UK - Jobless claims, average earnings, employment change
10:00 EU - German ZEW survey
 

Wednesday, 12th December, 2018


10:00 EU - Euro-Zone industrial production MoM & YoY
13:30 US - CPI & average earnings
19:00 US - Monthly budget statement
 

Thursday, 13th December, 2018


07:00 EU - German CPI
12:45 EU - ECB rate decision
13:30 US - Jobless claims


Friday, 14th December, 2018


08:30 EU - Markit Euro-Zone PMI
13:30 US - Retail sales
14:15 US - Industrial production
14:45 US - Markit PMI

 
 
 

Dan Waterman
Office Manager

 
 
 
 
 
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