GBP - British Pound
British politics once again snatched headlines after another vote in Parliament was concluded on Monday night. The vote essentially means that unless there is a withdrawal agreement in place before October 19th, Britain will be forced to head back to the European Union and agree a delay to the process.
On the contrary, Johnson is still adamant that there is no extension on the table and the government have “about 20 ways” that they can avoid the extension. “I will go to that crucial summit on October the 17th and no matter how many devices this parliament invents to tie my hands, I will strive to get an agreement in the national interest.” One idea is to simply ignore the bill passed in parliament last night, which is both illegal and highly risky.
Analysts suggest the most likely scenario remains an extension to the Brexit process however with Johnson at the helm, who knows? UK average Earnings data is released at Tuesday 9.30am.
The Euro remains under pressure in the lead up to the European Central Bank meet on Thursday. There have been reports released from the Eurozone that claim that as Britain leave the bloc, the EU’s share of the global capital market will fall from 21% to 14%. This leaves the bloc in further disarray and scrambling to replace the financial gain the UK provides.
Germany have provided the EU with a reason to cheer however, as their trade and current account balances came in much stronger than expected thanks to an increase in exports. This is a small glimmer of hope for the bloc’s largest economy and it is evident that Germany are serious about fiscal stimulus in an attempt to avoid a deep prolonged recession.