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.

Economic Calendar

09:00German Business Expectations(DEC)98.7
09:00IFO - German Current Assessment(NOV)105.4
09:00German IFO Business Climate Index(NOV)101.8102
13:30USD Building Permits (M/M)(NOV)0.00%-0.40%
13:30USD Building Permits(NOV)1.270K1.265K
13:30USD Housing Starts(NOV)1.230K1.228K
13:30USD Housing Starts (M/M)(NOV)1.50%
13:30CAD Manufacturing Shipments (M/M)(OCT)0.30%0.20%
21:45NZD Current Account (Q/Q)-5.94B-1.62B
23:50JPY Exports (Y/Y)(NOV)1.88.2
23:50JPY Merchandise Trade Balance Total(NOV)-600B-450B
23:50JPY Merchandise Adjusted Trade Balance(SEP, 2016)-302.7B

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.