- Prime Minister Theresa May asked MPs for more time to secure changes to the Irish backstop clause in the Brexit withdrawal agreement.
- Mrs May promised to update the commons again on the 26th February and if there are no improvements by then, to give MPs a non-binding vote on the next steps.
- In updating MPs, PM May said that, as expected, the EU had reiterated their position that the withdrawal agreement is dependent on the problematic Irish backstop.
- Labour leader Jeremy Corbyn accused the prime minister of “running down the clock” with the UK expected to leave the EU on the 29th March.
- Sterling lost ground on the euro yesterday. GBP/EUR opened at 1.1400, traded a high of 1.1417, a low of 1.1378 and closed at 1.1381 representing a loss of 0.21% on the day.
- GBP/USD opened at 1.2853, traded a high of 1.2909 before closing at 1.2890 representing a 0.29% increase on Tuesday.
- It was a quiet day in terms of economic data. US JOLTS job openings came in better than expected at 7.34M vs 6.48M.
- US President Donald Trump said the US could extend the China trade talks deadline but is “not inclined to”.
- Trump also said he is unhappy with the funding deal for the US-Mexico border wall but does not expect government to shutdown again.
- New Zealand interest rates were held at 1.75% as expected.
- GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.8132, 1.8909 and 142.76, respectively.
- We will see the release of UK inflation data at 9.30am – CPY y/y, PPI input m/m and RPY y/y.
- Follow that, at 1.30pm, we expected to see CPI m/m and core CPI m/m from the US.
|Currency Pair||Interbank Rate||% Change on Day|
|Time (GMT)||Region||Data Release||Forecast||Previous|
|09:30||GBP||PPI input m/m||0.2%||-1.0%|
|13:30||USD||Core CPI m/m||0.2%||0.2%|