UK MPs to back the government’s plan to start formal Brexit talks

Today's Highlights

• UK MPs to back the government's plan to start formal Brexit talks

• Bank of Canada holds rates at 0.50%

• European Central Bank Press Conference later today

 

Current Market Overview

Sterling had an especially poor day with a cumulative loss against its major peers of close to 4% which is likely as a result of all the political uncertainty entering the media spotlight once more after a couple of weeks of respite.

Last night, MPs voted to back the government's plan to start formal talks on Brexit by the end of March 2017. MPs also backed Labour's motion, saying the government should publish a plan and it was "Parliament's responsibility to properly scrutinize the government" in the detail of their Brexit plans.

This followed another vote over the government's amendment to the motion, which added the proviso that its timetable for triggering Article 50 of the Lisbon Treaty, getting formal talks with the EU under way, should be respected. Technically, MPs have only backed the government's plan to start the process of leaving by the end of March next year. Nonetheless, it is a statement of Parliament's intent.

Both the government and the opposition will claim victory over tonight's result; Labour for winning the motion for the government to agree to publish a Brexit plan of sorts, which will be subject to scrutiny, ministers for getting MPs' backing for their timetable.

Yesterday afternoon’s data, as expected, showed that the Bank of Canada remained on hold at 0.50%, citing a possible slowdown of the economy as the reason for the hold.

The main news of today will be focused around the European Central Bank, where President Mario Draghi has indicated that the Central Bank will look at a variety of policy tools at the meeting on Thursday, although the majority feeling is that they will err on the side of caution and keep things on hold, although we will see at 12:30 GMT.