Johnson attempts to push through Brexit

22nd October 2019 Market Update

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?? GBP -  This evening, parliament are expected to vote on the prime minister’s Withdrawal Agreement Bill. MPs are then expected to approve three-day timetable to consider the legislation, with a view to then deliver Brexit by 31st October. Critics state that 3 days is not enough to scrutinise the bill, and there are expected to be attempts to include amendments such as aligning the UK more closely with the EU customs union and to stage a second referendum. If any of these amendments pass, this would realistically derail the Brexit deal. If the government is unable to get the bill through parliament, the UK would be leaving the EU without a deal, although the EU is expected to grant an extension. Current estimates suggest that Johnson will squeeze through his deal, however a victory would be very marginal. There is no data of significance being released from the UK today.

?? EUR - Yesterday morning German PPI was released, and it crept up from the previous reading of -0.1% to 0.1%. However, this had no impact on the euro. Today there is no date of note from the eurozone. All eyes will be on the eurozone this Thursday, with services and manufacturing data being released from across the zone. The ECB will the announce its main refinancing rate, followed by a press conference.

?? USD -  There was no data of note released from the US yesterday. This afternoon home sales and the Richmond manufacturing index are being released. Existing home sales are expected to slightly lower, and the Richmond manufacturing index marginally higher. Neither are expected to have too much of an impact on the dollar.

 

Summary:

GBP: Johnson attempts to push through his deal again
EUR: Quiet in the eurozone with no data of significance being released
USD: Like the eurozone, very little data of importance being released from the US


 

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