Yesterday, PM May announced a surprise decision to abandon her meaningful vote set to take place today in an attempt to seek assurances from the EU on the Irish backstop. It’s clear she finally got the message that she faced humiliation had she proceeded with the vote today. It’s now down to her to produce something which will convince MPs the Irish backstop is a viable option. The Prime Minister has not provided any further information on when she plans to eventually hold the new vote. It looks increasingly likely she’ll return to Parliament in January with effectively the same deal, relying on a falling UK stock market and pound as well as rising fears of ‘no deal’, to help her garner the votes required. To her detriment she now faces calls of no confidence from across the House. PM May is an exceptionally honourable and gutsy public servant but it must be asked – what is she actually doing? Her strategies ever increasingly seem doomed before they even begin – her latest one a prime example.
No surprises – GBP is suffering, big time. The pound/dollar rate is being held up by psychological support at $1.25 while GBPEUR uses the key level of €1.10 to prevent any further leakage. How long do these levels last for? – A good question considering recent price action.
Today’s economic calendar is light, aside from monitoring the ongoing Brexit saga many will be watching out for UK employment data scheduled for 09.30. Additionally, German economic and business sentiment numbers will be keenly eyed at 10.00.
10:04am, December 11th 2018
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