Bus in Westminster

Supreme Court hearings in focus

17th September 2019 Market Update

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?? GBP –  After being lambasted by the Luxembourg PM for failing to turn up for a press conference, Boris Johnson will once again come under pressure as the legalities of his decision to suspend parliament will be debated by the Supreme Court.

Talks between Johnson and EU official Juncker failed to deliver any breakthrough in any kind of Brexit deal with Juncker commenting that Boris has failed to bring anything new to the table with regards to the Irish Backstop. Amid chaotic scenes of protests and being told he was a liar, Mr Johnson then refused to take part in a press conference as the location outside and in front of the protesters and was later criticised by the Luxembourg PM.

No economic data on the agenda but today sees the start of a three day Supreme Court hearing over the legalities for suspending parliament. Eleven of the Supreme Court justices will hear legal arguments from the English and Scottish court cases first with government lawyers responding after. Depending on the outcome of the hearing, PM Boris Johnson must then decide whether to recall parliament.

Sterling still sits near fresh 8 week highs versus the euro but is approximately one cent of the highs versus the US dollar.

?? EUR – Only news yesterday saw the release of Italian inflation figures falling shy of an expected 0.5% to fall to 0.4%. The euro finished broadly weaker against a basket of currencies by the close of business

Today sees the release of latest ZEW surveys of economic sentiment from both Germany and the Eurozone as a whole. German sentiment is expected to increase marginally from -44.1 to -38 with Eurozone sentiment forecasted to remain at -43.6.

?? USD –  The dollar remained resilient yesterday after consumer sentiment rebounded mildly in September after a sharp decline in August. Retail and food services sales also improved in August with the gains boosted by higher spending on cars and parts and building materials.

No major data out today.

 

Summary:

GBP: Prorogation of Parliament goes to the courts
EUR: Economic sentiment number in focus
USD: Dollar still strong after positive consumer numbers


 

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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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