Daily Currency Update

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Waiting game for Boris

GBP - British Pound

Sterling remained fairly muted on Wednesday in the aftermath of Tuesday’s parliamentary Brexit votes. After the EU rejected Johnson’s fast track timetable proposal, it is now down to the EU diplomats to determine the length of the UK’s extension, if any. It is anticipated that the motion was discussed on Wednesday night at an ambassadors meeting that should lead to a decision on Friday. President Donald Tusk has urged EU leaders to back an extension however there are still those that oppose this notion.
EU leaders may call an emergency summit on Monday for political talks in order to iron out any creases between the two parties. Johnson still stands by his previous statement – it’s his deal or a no-deal on October 31st, with no option of an extension. French officials are keen to offer an extension until 15th November at the latest however Jan 2020 is still looking most likely.

Key Movers

There is an abundance of data released today across Europe and the US. Spanish employment data is followed by a number of different Manufacturing and Services PMI releases. All are expecting a slight uptick on previous results however not expected to give any real gains to the Euro. The most important story in the Eurozone today is Mario Draghi’s final ECB Refinancing meet however it's expected to be fairly uneventful. Eyes are fixated on the European Brexit decision and escalations in the US-China trade war.

Expected Ranges

GBP/USD: 1.2835-1.2975 ▲

GBP/EUR: 1.1540-1.1635 ▲

GBP/AUD: 1.8805-1.8935 ▲