Almost Crunch time for Mrs May

The pound opens lower today and is subject to downside pressure ahead of tomorrow’s Brexit Parliamentary vote, after the European Court of Justice ruled the UK can cancel Brexit without permission of the other 27 members and without affecting its current terms.

Previous Day's Market Highlights

On Friday we witnessed weaker than expected US jobs data, after US Non-Farm Payroll and Average Hourly Earnings fell short of estimates. The NFP posted a figure of 155k, short of the 200k forecasted and Hourly Earnings m/m came in lower at 0.2 percent against the 0.3 percent increase forecasted, however the yearly did fall in line at 3.7 percent expected. This data, which only added to the recent growing concerns surround a slowing US economy, drove the dollar lower against the euro on Friday by 0.5 percent.

The pound was hit hard by growing panic surrounding Brexit, allowing the euro to gain 0.7 percent and the dollar 0.45.

OPEC announced cuts on Friday, after 2 days’ worth of deliberation. They reached an agreement to slash oil production, against the heavy pressure by Donald Trump to keeping it unrestricted.

The cuts will remove 1.2 million barrels a day from the world markets and will start in January for 6 months. Crude was up by almost 5 percent on Friday after the news.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1150 1.1550 1.1124 3.69%
GBP/USD 1.2723 1.2938 1.2658 2.16%
EUR/USD 1.1406 1.1472 1.1212 2.27%
GBP/AUD 1.7629 1.8059 1.7210 4.70%
GBP/NZD 1.8474 1.9283 1.8290 5.15%
GBP/CAD 1.6943 1.7285 1.6721 3.26%

Today's Market Highlights

A relatively quiet data calendar today means all attention will be on news surrounding the Brexit Parliamentary vote tomorrow. Breaking news form the European Court of Justice has granted the UK the right to cancel Brexit without the permission from the other 27 EU members.

This means the UK can unilaterally cancel without altering the current terms of Britain’s membership, which only adds to the increasing pressure weighing on Theresa May's government.

This morning UK GDP m/m data came in line with forecast at 0.1 percent and Manufacturing data fell shy of estimates dropping 0.9 percent against the predicted 0 percent. The pound opens lower today and is very much subject to continued downside pressure due to Brexit related issues.

Today's Economic Calendar

Time Currency Release Consensus Previous
9:30am GBP GDP m/m 0.1% 0.0%
9:30am GBP Manufacturing production m/m 0.0% 0.2%