Prime Minister May stated that the Brexit vote would be held in the third week of January.

Global equities continued to decline amid global growth concerns with the US S&P 500 index registering the lowest close of 2018 while global bourses lost ground.

The dollar was hampered by evidence of a slowdown in growth and uncertainty ahead of the Fed statement, although political concerns stifled backing for European currencies.

Oil prices declined sharply on underlying demand and supply concerns with WTI sliding to 15-month lows below $49.50 p/b with the Australiana and Canadian currencies losing support.

Precious metals were underpinned by a weaker US dollar.

Cryptocurrencies rallied despite adverse risk conditions with speculation over some support from declining equity markets.

The IHS index of UK household finance sentiment declined to a 6-month low for December with confidence in the outlook for house prices at a 9-year low, maintaining concerns surrounding the economic impact of Brexit. There were also further reports of weak trading conditions within the retail sector. Political concerns continued to have an important impact with Sterling gaining some support from speculation over a second Brexit referendum. There were, however, also reports that the government would face an opposition no-confidence vote if there was no vote on the Withdrawal Agreement this week.

Prime Minister May stated that the Brexit vote would be held in the third week of January. Labour tabled a vote of no confidence in May which had much less force than a vote on the government. Speculation over ways to escape from Brexit deadlock continued to have an important impact.

GBP/EUR settled just above 1.1100 while GBP/USD closed just above 1.2600 as the dollar lost ground and the UK currency edged higher on Tuesday given speculation that Article 50 could be extended.

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