Five day Commons debate begins as PM May battles to have her deal passed
Yesterday saw the beginning of a mammoth debate in the House of Commons over the withdrawal agreement (‘deal’) which Prime Minister May is waging her political career on. The debate will last around 5 days before MPs are finally set to vote. Yesterday’s action in Parliament saw the government defeated 3 times. The government was defeated on an amendment put forward by Tory and pro-remainer, Dominic Grieves. The amendment gives Parliament more power to instruct PM May what to do in the expected event that she loses next week’s vote. The government were also defeated on a motion which ultimately finds them in contempt of Parliament over their failure to publish its legal advice on the withdrawal agreement. Not a very good day for May and it doesn’t appear that it will get much better.
Today US markets will be closed to commemorate the passing of George H.W. Bush senior. Nevertheless, we’ll still have some key reports released from Europe & Canada which should keep participants busy. From the UK’s perspective, services PMI will be closely watched. It’s especially important in the context of defining GBPUSD’s likely direction today considering it’s sitting just above key $1.2660 support. From Canada we’ll see a monetary policy announcement from the Reserve Bank of Canada. No change is expected here but any clues on 2019 policy may give the currency reason to move. From the Eurozone, services PMI and retails sales will be the main releases.
Written by Vivek Savani. 12:05pm, December 5th 2018
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