Markets cautiously awaiting Brexit progress

Today's Highlights

• Eurozone slowdown fears weigh on Euro

• Data diary will be watched closely

 

Current Market Overview

Sterling remains the strongest currency for the week after Theresa May narrowly won the confidence vote in the Commons. Traders seem to be cautious until May shows any progress on Monday.

Theresa May won the confidence vote narrowly by 325-306 in the Commons, a day after her Brexit plan was rejected. Now, she has started meeting some party leaders to “find solutions that are negotiable and command sufficient support” from the House of Commons. May also plans to return to the Commons on Monday to “table an amendable motion and to make a statement about the way forward.” And she reiterated the pledge to deliver Brexit.

However, there is no meeting with opposition Labour leader Jeremy Corbyn yet. Mr Corbyn insisted that there will be no talks unless no-deal Brexit is ruled out. His spokesman said “Of course (Labour leader) Jeremy is prepared to meet the prime minister, but if we’re talking about substantive talks on how to resolve the crisis over Brexit … then the starting point for that needs to be that no deal comes off the table.”

Eurozone slowdown fears weigh on Euro

The US Dollar and Yen are stronger today, as are the Commodity Currencies, for the most part. The Euro and Swiss Franc are weakening this morning. Persistent worries over a Eurozone slowdown, in particular in Germany and France, is weighing on the Euro, which in turn drags down the Swiss Franc.

Data diary will be watched closely

Away from Brexit, we await the Bank of England credit conditions and bank liabilities surveys, plus the Eurozone Consumer Price Index (CPI) this morning. In the United States this afternoon, the Philadelphia Federal Reserve Survey and Jobless Claims are due. Data has been soft recently, so these will be watched very closely.