Brexit Confusion Weighs on Pound, Dents Risk Appetite

Daily Update - 23rd October 2019

Yesterday’s Market

• GBP: UK Parliament Vote On Brexit

Yesterday’s Explained

The British pound fell against the dollar and the euro after UK lawmakers on Tuesday rejected the government’s proposed timetable for passing legislation to ratify its Brexit deal.

 

Today’s Market

• EUR: Business Climate; Consumer Confidence

• USD: Housing Price Index

• AUD: Commonwealth Bank Manufacturing PMI

Today’s Focus

For EUR, it’s another quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction. For the Pound, it’s also a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction. A lack of stats leaves the Pound in the hands of the UK Parliament through the latter part of the day. The Pound continued to suffer in the early hours as Brexit hit pause. On Tuesday, MPs voted down the British PM’s schedule to deliver Brexit by Halloween. The good news for the Pound, however, was a Parliamentary vote in favor of Boris Johnson’s Withdrawal Agreement Bill, his first Parliamentary victory since taking office.The loss of control over the timetable, however, could lead to continued debates on the Agreement Bill that may end up being voted down in the weeks ahead.

For the Dollar, it’s a quiet day ahead on the economic calendar, with no material stats due out of the U.S to provide the Dollar with direction. The lack of stats leaves geopolitics to provide direction throughout the day. Earnings will also influence risk sentiment and demand for the Greenback.