Questions over Brexit backstop plan

Sterling has rebounded from yesterday’s lows after PM May failed to offer a concrete guarantee that the Brexit Backstop plan will have a definitive time limit.

Previous Day's Market Highlights

GBPEUR initially dropped 0.6%  yesterday after rumoured fears that David Davis might resign whilst at loggerheads with Theresa May over the wording for the “backstop” plan for trade with the EU. A spokesman for the PM said that was not the case and a recovery of nearly half a percent was made.

With an almost bare calendar – barring USD jobless claims that stayed largely on course: forecast at 223k and coming in at 222k – the Brexit story was the driving force of the day for most GBP pairings, and the aftermath may play a heavy part in today.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1385 1.1478 1.1302 1.53%
GBP/USD 1.3407 1.3619 1.3204 3.05%
EUR/USD 1.1775 1.1996 1.1510 4.05%
GBP/AUD 1.7679 1.8241 1.7518 3.96%
GBP/NZD 1.9111 1.9702 1.8928 3.93%
GBP/CAD 1.7434 1.7567 1.7055 2.91%

Today's Market Highlights

Yesterday Brexit Secretary Davis claimed a victory, however - this triumph seemed empty by early this morning as Theresa twice refused reporters a “cast-iron guarantee” that the end date would not be pushed back.

This has seen all of yesterday’s losses reversed with GBP/EUR currently trading at 1.1382, the same level as this time yesterday.

With the exception of CAD unemployment data scheduled for release at 13.30, the economic calendar remains fairly light, with any volatility today likely to be politically driven.

Today's Economic Calendar

Time Currency Release Consensus Previous
All Day ALL G7 Meetings
1:30pm CAD Employment Change 19.1K 1.1K
1:30pm CAD Unemployment Rate 5.8% 5.8%