Sterling Stable as May Heads to Brussels

The pound trades sideways as May heads to Brussels for further Brexit talks.

Previous Day's Market Highlights

As we reach the half way point of May's attempt to gain the crucial support needed, she has effectively failed to make any progress. Yet a lack of support for the attempted coup from conservative “Brexiteers” has fizzled out giving May some short-term breathing space. However, the party remains divided with reports of a new “pizza plot” surfacing in the papers. A tabloid nick name for the five key figures of the conservative party who are aiming to remove May once an appropriate replacement has been found.

The markets had little reaction in response to the developing Brexit problems. With pound Sterling failing to recover the ground lost on Monday and trading largely flat on Tuesday.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1239 1.1506 1.1172 2.90%
GBP/USD 1.2807 1.3175 1.2691 3.67%
EUR/USD 1.1396 1.1500 1.1302 1.72%
GBP/AUD 1.7703 1.8459 1.7502 5.18%
GBP/NZD 1.8788 1.9903 1.8657 6.26%
GBP/CAD 1.7021 1.7285 1.6637 3.75%

Today's Market Highlights

All eyes will be on Theresa May today as she meets with EU officials later on to agree a political declaration on Britain's withdrawal from the EU. Both sides are scrambling to finalise a Brexit deal in time for Sunday’s summit of European Leaders. The EU missed its deadline on Tuesday to complete the text of its declaration on future relations with the UK, amid concerns from several member states. Stumbling blocks still remain over UK access to the EU single market, access to UK waters for EU boats and Gibraltar.

With little in the way of data, the market will likely focus on the continuing Brexit talks. The only macro data of note is US core durable goods orders as well as the Japanese CPI figure overnight.

Today's Economic Calendar

Time Currency Release Consensus Previous
9:30am GBP Public Sector Net Borrowing 5.6bn 3.3bn
1:30pm USD Core Durable Goods Orders (m/m) 0.4% 0.0%
3:00pm USD Revised UoM Consumer Sentiment 98.4 98.3
11:30pm JPY National Core CPI (y/y) 1.0% 1.0%