Johnson continues to battle with MPs to get Brexit over the line

21 October, 2019

Simon Eastman

Johnson continues to battle with MPs to get Brexit over the line after failing to get backing on Saturday.

For the first time in 37 years Parliament met to vote on the current deal but failed to pass it through with 322 to 306 voting against the PM. They want the withdrawal bill approved before and as such the Benn act was triggered. This forced Johnson to request a further extension from the EU,but in a defiant twist, Johnson sent three letters to them in a bid to circumvent the “Brexit wreckers” and although sent the letters he refused to sign them.

Labour have since come out saying they plan to wreck Johnson’s bid to get Brexit over the line this week, by whipping up support to call for amendments for a second referendum and customs union with the EU, something Johnson does not want, instead hoping to cut ties and form new trade deals with EU countries. Kier Starmer commented they want a confirmatory vote on any deal and has called out for the DUP to support them n keeping the UK tied to a customs union, the very issue they had with Johnson’s plan.

Meanwhile Michael Gove confirmed the government have triggered Operation Yellowhammer, the contingency plans for leaving on October 31st without a deal at all.

So what does this mean for the pound, which finished the week at five month highs against the euro and UD dollar?

The request and consideration for another delay could keep the pound from falling off a cliff edge, but buyers beware, the pound is likely to remain under pressure as the end of the month draws closer. We saw trading open in Asia overnight slightly lower.

In addition to the ongoing Brexit furore, we also have some key eco starts to consider, although unlikely to take much of the front page headlines away from Brexit, it’s worth keeping in mind the following throughout the week:

Bank of England member Haldane speech at 4pm Monday. ECB lending survey on Tuesday along with Canadian retail sales at 1.30pm. US house price index on Wednesday at 2pm. German market services PMI on Thursday at 9.30am Ahead of the ECBs interest rate and policy meeting at 12.45pm. US jobs data follows at 1.30pm, alongside the ECB policy press conference. US PMI follows at 2.45pm. Friday finishes up the week with German business climate date and a US consumer sentiment survey at 3pm.

To avoid missing out on your upcoming currency purchase, speak to one of our dedicated currency consultants today to discuss your requirements and the options available to trade.