Sterling fell slightly on Wednesday in the aftermath of the government’s Brexit timetable being blocked. The House of Commons had approved the withdrawal deal, but rejected the three-day timescale to legislate on the agreement.
The type of extension, or whether there will be an extension lays in the hands of the EU now. They are expected to approve an extension to Article 50 in order to avoid a no-deal exit, with a “flextension” being seen as the most likely outcome. EU Council President Tusk has already floated this idea, with the option of a delay until January 31 2020, but with an option to leave should the deal be passed and ratified by Parliament.
In response to last night’s mixed result Boris Johnson banged the drum for a general election, demanding that MPs who voted down his bill now back an election in order to break the deadlock.
08:30 – EUR: German Markit PMI Composite (Oct); expected to increase to 48.8 from previous 48.5
08:30 – EUR: German Markit Manufacturing PMI (Oct); expected to increase to 42.0 from previous 41.7
09:00 – EUR: Eurozone Markit PMI Composite (Oct); expected to increase to 50.3 from previous 50.1
12:45 – EUR: ECB Deposit Rate Decision; expected to remain at -0.5%
12:45 – EUR: ECB Interest Rate Decision; expected to remain at 0%
12:45 – EUR: ECB Monetary Policy Statement and Press Conference