Election bill in focus today

29th October 2019 Market Update

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🇬🇧 GBP –  Yesterday the 27 EU ambassadors agreed in principle to extend Brexit until January 31st. EU Council President Donald Tusk agreed that a ‘flextension’ was the best way forward for UK MPs to scrutinise Johnson’s current deal. This means that the UK could leave the bloc sooner if its withdrawal agreement has been ratified. Markets remained stagnant from the news, as this ultimately removes the risk of a no-deal departure on Halloween.

The PMs push for a December election was dealt another blow yesterday evening, this is the third time Johnson has failed to secure an early election, losing the vote 299 to 70. Despite this, he immediately launched a high-stakes gamble by deciding to push for an election via a different route. In order to strip Westminster from a ‘paralyzed government’ Johnson will push for an election based from a Lib Dem and SNP view, meaning he will only have to gain a simple majority rather than two thirds. The PM will put his Brexit deal on ice while he allows the country chose a new parliament, giving voters a final chance to stop Britain’s departure from the EU.

There will be no red flag data from the UK today.

🇪🇺 EUR – Nothing of note came from the EU yesterday apart from Draghi making his final speech passing his duty to his successor, Christine Lagarde. Lagarde is a French lawyer previously serving as Chairman and Managing Director of the International Monetary Fund since 2011, she will become the first woman in the position of ECB President upon taking office on 1 November.

There will be no red flag data from the EU today.

🇺🇸 USD –  The US was quiet yesterday as US-China trade talks continue to progress as ‘phase one’ comes to an end. The states release CB Consumer Confidence at 3pm today which is meant to gain 3.1 from the previous reading.

 

Summary:

GBP: Boris pushes bill for election
EUR: EU grant extension to Brexit
USD: Markets braced for Fed rate decision


 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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