The Pound retreated from six-week highs against the Dollar on Tuesday as Prime Minister, Boris Johnson, stuck to his pledge to take Britain out of the European Union by October 31st, vowing not to seek an extension to the deadline. The PM is required by a law passed this month to ask the EU for a three-month delay to Brexit if a deal is not approved by October 19th, but British media reports say his team are looking at ways to circumvent it. With less than seven weeks until the Brexit deadline, Johnson is hoping a Brexit deal can be clinched at an EU summit on October 17-18th.
Sterling is also being buffeted by the volatile Dollar, which rose late on Monday as oil prices eased and trade tensions with Japan appeared to cool. The greenback inched to a five-day high against a basket of currencies ahead of the U.S. Federal Reserve’s policy meeting this week.
09:30 – GBP: Consumer Pricing Index expected to fall to 1.8%.
19:00 – USD: FOMC Economic Projections.
19:00 – USD: FOMC Statement.
19:00 – USD: Federal Funds Rate expected to be cut to 2.00%.
19:30 – USD: FOMC Press Conference.