Could Brexit be delayed?
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Markets keep close eye on US
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US and Canadian data in the spotlight
In the latest Brexit news, if Mrs May’s deal is rejected by Parliament next week, it has been claimed that the UK’s exit from the EU could be postponed. According to The Telegraph, sources in Brussels say EU leaders are open to delaying Brexit if the agreement falls through. The process would involve delaying Article 50. The Pound did rise slightly across the board yesterday, but largely remains locked in tight ranges against both the Euro and US Dollar as we maintain a wait-and-see stance ahead of the key 11th December vote in UK parliament.
Yesterday evening there were hopes that a new amendment to the Brexit deal legislation would help sway opponents into backing the deal and minimising the scale of losses potentially suffered by the government next week.
If May loses the vote next week, the scale of the loss will be key in influencing the Pound. A small loss would signal to markets that the government’s deal could pass on a second attempt, provided that further revisions are made to the agreement.
A large loss for May would send a strong signal that the Brexit deal is dead and drastically raise the prospect of a ‘no-deal’. The amendment itself sought to give parliament more of a say over whether a controversial backstop clause is ever triggered. The Democratic Unionist Party (DUP) has rejected this, saying it offers nothing more than mere ‘tinkering’. Their response is a big indicator that the deal won’t pass next week.
Markets keep close eye on US
This afternoon, the focus will be on the United States, as we await important labour and wage data. Non-Farm Payrolls are expected to rise by 200,000 in November and average earnings are predicted to have risen by 0.3%. The jobs market has been incredibly robust in the US and the US Dollar has benefitted as a result, however, investors are beginning to get concerned over the strength of the US economy and weaker data this afternoon could see the US Dollar sold aggressively. The US Dollar is one to keep a close eye on- get in touch if you are making and currency transfers to or from the US.
US and Canadian data in the spotlight
Today, the focus will continue to be on the ongoing Brexit-related news. Data-wise, Canadian employment figures and US Non-Farm Payroll numbers will be the most important.
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