Newsletter – 5th December 2018

Morning Bulletin

Yesterday

  • The government lost three votes in the Commons yesterday;
    • First they lost a bid to have the legal advice issue dealt with separately by the Privileges Committee of MPs.
    • Ministers were then found in contempt of parliament and were told that they would have to publish the legal advice in full. Ministers had previously argued that it publishing the advice was not in the national interest.
    • The third defeat was over changes to the parliamentary process in the event that the Commons votes down PM May’s deal. MPs will be able to vote on what they want the government to do next.
  • Theresa May opened five days of debate yesterday by claiming the UK would enjoy a ‘better future’ outside the EU. She also said that the ‘honourable compromise’ on offer was not the ‘one-way street’ that is has been portrayed to be.
  • Labour leader Jeremy Corbyn reiterated his view that the deal is a bad one for the UK and he said Labour would seek a vote of no confidence in the government if the deal is thrown out by MPs.
  • GBP/EUR opened at 1.1202, traded a high of 1.1248, a low of 1.1180 and closed at 1.1219 representing a 0.15% increase of value of sterling relative to the euro on the day.
  • GBP/USD came off by 0.07% yesterday however it traded a relatively large range after it opened at 1.2723, traded a high of 1.2839, a low of 1.2658 and eventually closed at 1.2714.
  • UK construction PMI came in better than expected at 53.4 vs 52.5 expected.
Overnight
  • Australian GDP q/q came in weaker than expected at 0.3% vs 0.6% expected.
  • GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.7454, 1.8382 and 143.77, respectively.
Today
  • The government will publish the full legal advice today at 11.30 following the instruction from Parliament.
  • UK services PMI has come in weaker than expected at 50.4 vs 52.5.
  • At 3pm we expect Canadian rates to be announced unchanged at 1.75% along with the accompanying BOC rate statement.
Currency Pair Interbank Rate % Change on Day
GBP/EUR 1.1229 +0.09
GBP/USD 1.2738 +0.19
EUR/USD 1.1343 +0.01
AUD/USD 0.7290 -0.63

 

Time (GMT) Region Data Release Forecast Previous
11:30 GBP Brexit Legal Advice Published
15:00 CAD BOC Rate Statement
15:00 USD Overnight Rate 1.75% 1.75%