Prime Minister May out-lined the Brexit deal to parliament following Sunday’s EU Summit..
Prime Minister May out-lined the Brexit deal to parliament following Sunday’s EU Summit.
The dollar secured net gains even with an improvement in global risk conditions as expectations of another round of month-end corporate US buying provided support.
The Euro was hampered by ECB Draghi’s reservations over the growth outlook and underlying expectations of weak growth while political concerns again undermined Sterling.
The corrective rally in oil prices faded quickly amid underlying supply concerns.
Equity markets made net gains despite uncertainty surrounding US-China trade policies.
Cryptocurrencies failed to sustain the initial recovery and moved sharply lower, but held above weekend lows.
UK banking-sector mortgage approvals increased to 39,700 for October from 38,700 the previous month and were above market expectations. Sterling gained some ground in European trading with a recovery in risk appetite offering support.
Prime Minister May out-lined the Brexit deal to parliament following Sunday’s EU Summit. The opposition Labour Party maintained their determination to reject the deal and there were still strong expectations that the meaningful vote, likely to be held on December 11th would see the government defeated which would create major political and economic uncertainty.
GBP/EUR settled around 1.1275 and GBP/USD retreated to near 1.2800 on a firm dollar after a peak above 1.2860. CFTC data continued to record a substantial net short Sterling position, maintaining the potential for short liquidation if there is a shift in political dynamics, but markets continued to expect that parliament would reject the deal.
Sterling was unable to make headway as GBP/USD dipped below 1.2800 on Tuesday amid wider UK losses with further expectations that parliament would reject the Brexit deal undermining sentiment.
Economic Calendar
Expected | Previous | ||
---|---|---|---|
15:00 USD | US CB Consumer Confidence | 135.5 | 137.9 |
16:00 EUR | European Central Bank Yves Mersch Speech | - | - |
19:30 USD | FOMC Member Raphael Bostic speech | - | - |
20:00 NZD | RBNZ Financial Stability Report | - | - |