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Pound stalls as the Brexit storm clouds gather again

15th February 2019 Market Update

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🇬🇧 GBP – Confusion reigns again at Westminster as Theresa May suffered another commons defeat on the endorsement of her current negotiating strategy. MP’s voted by 303-258 against the government with the Conservative ERG group abstaining as expected. While the vote is not legally binding the result does show how fragile May’s position is and as such again undermines her desire for a coherent parliamentary message to present to Brussels. A spokesman confirmed that PM May will press on with her attempts to renegotiate the backstop regardless.

🇺🇸 USD – With trade talks with China seemingly stalling President Trump, while agreeing to a shutdown-averting bill, has announced that he will declare a national emergency to raise funds for the highly contentious border wall with Mexico. In this way he hopes to take Congress out of the equation but could face a legal challenge from the Democrats.

🇪🇺 EUR – In Europe Spanish Socialist PM Sanchez is expected to call a snap general election today following parliaments rejection of his 2019 budget.

Today’s economic data kicks off with UK Retail Sales for January at 9.30am. Analysts expect a print of +0.2% but with Brexit headlines dominating sentiment the markets will probably shrug off any “as expected” out turn. US Industrial Production at 2.15pm (for Jan, expected +0.1%) and Michigan Consumer Sentiment at 3pm (expected 93 from 91.2 last time) are the picks from the US and should provide the market with further insights into the current state of the US economic and consumer landscapes.

Central bankers Coeure of the ECB (1pm) and FED’s Bostic (2.55pm) are also due to provide their insights this afternoon.

 

Summary:
GBP: May suffers blow after latest Brexit defeat.
USD: Trump declares National Emergency .
EUR: Snap General Election expected in Spain

 

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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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