The pound comes into full focus today as debating begins in Parliament over PM May’s withdrawal agreement. MPs will argue for and against and additionally propose amendments on the deal, culminating with a vote on Tuesday 11th December at c.7pm. In addition, Mark Carney will today head back to Parliament to testify in front of the Treasury Select Committee over the withdrawal agreement. A huge amount of potential across the next few days to see influential comments and statements from a number of politicians and key figures. Sterling remains near its yearly lows against a number of currencies. A couple of key levels which would trigger further significant loses if broken include GBPUSD 1.2660 and GBPEUR €1.0990. Both appear to be in range given the time left before the vote next week.
Overnight, the Reserve Bank of Australia maintained their cash interest rate at 1.50%. The central bank have once again steered the ship steady with the next interest rate not expected until the end of 2019. The Aussie dollar has seen a little strength against the pound following the announcement. Today’s economic calendar is light – UK construction PMI will be one of the main highlights.
11:04am, December 4th 2018
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