Yesterday evening saw clarification that Britain will hold its first December election in almost a century as a way of trying to fix a ‘broken Parliament’ and break the Brexit deadlock. Boris Johnson won approval from the lower house of Parliament, and now the bill calling for a December 12th election will go to the House of Lords for approval.
The outcome of this election remains far from certain, with large numbers of voters fatigued and enraged by the Brexit process over the past three years. The typical two party majority is under massive threat from the Liberal Democrats and Brexit Party, with the Conservative and Labour parties both suffering an erosion of support amongst their traditional safe voters. This uncertainty has seen the pound weaken slightly as markets brace itself for a very close and important election.
11:00 – EUR: German Harmonized Index of Consumer Prices (YoY) (Oct); expected to fall to 0.8% from previous 0.9%.
12:30 – USD: Gross Domestic Product (Q3); expected to fall to 1.7% from previous 2%.
18:00 – USD: Fed Interest Rate Decision; expected to fall to 1.75% from previous 2%.
18:00 – USD: Fed Monetary Policy Statement.
18:30 – USD: FOMC Press Conference.