Previous Day's Market Highlights
With PM May looking to secure support for her draft on Brexit, the annual CBI business conference gave her the perfect opportunity to win over key figures in the corporate world. A task that was expected to get her off to a good start given that CBI President John Allan was already calling for MPs and business owners to support her. However, the expected smooth sailing was anything but as members of the conference took turns in grilling the prime minister on what her draft deal meant for their businesses, often resulting in the PM coming up short, overall the conference failed to deliver the support the PM needed.
The result was a weaker pound with a drop of 20 basis points from the morning open of 1.1264. The pound was then dealt a second blow by Spain as they confirmed that they would obstruct Britain’s exit out of the EU unless Spain was given a joint say on any trade agreements. This saw Sterling fall to 1.1216 by lunchtime.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
Pressure continues to mount on the Prime minister as it was revealed this morning that the DUP were threatening to pull their support should Northern Ireland be treated any differently from the rest of the UK. Without the support of the DUP’s 10 members of parliament, May’s government will be unable to pass any legislation through parliament, effectively killing her hopes of getting a Brexit deal in place come March next year.
The worrying news had little effect to further weaken an already struggling pound, with the market opening this morning at 1.2873 and 1.1223 against the dollar and euro respectively. With little data due out today, US month on month housing starts and the UK Inflation report hearings will be in focus. However, all eyes will be on the increasing number of no confidence letters and further Brexit turmoil.
Today's Economic Calendar
|10:00am||GBP||Inflation Report Hearings|