Chequers – check-mate on Brexit?

4 July, 2018

Paul Newfield

A fairly quiet day on Tuesday, in terms of significant movements from GBP-EUR or GBP-USD, with a third-cent and half-cent gains respectively, to be followed up with little to no major data to be published today means that the small gains made yesterday presents a perfect opportunity to take advantage of current levels whilst they are available.

The pound received an early boost when PMI construction came in at 53.1, up from the previous and expected levels of 52.5. GBP was further assisted by poor EU retail sales, although the key PPI inflation figures were improved. In Bucharest ,the ECB’s Peter Praet gave a speech at 16:00, in which he stated that he was “confident that inflation in the eurozone will continue to improve towards the ECB’s target of 2%, even after the end of its QE program of bond purchases”.

With today being Independence Day in the United States there is no data from across the pond, with a lot being moved to tomorrow instead, but as with Monday a host of eurozone countries, the EU and UK, all present their Markit Services PMI figures between 08:15 and 09:30, with most expected to come in as previous, with little deviation. An unusually quiet day with nothing else for the markets to feed off afterwards, particularly the majors of GBP, EUR and USD, any movements will be sentiment led and affected by any updates on Brexit – the scheduled meeting at Chequers now confirmed for Friday.

As ever, do keep in touch with the team here at CI to stay ahead of the markets, especially due to the extreme lack of UK data for the rest of this week.