Off to Brussels

It has been only 10 days since Boris Johnson was handed the keys for number 10 Downing street and already the talk is circulating around a possible no-deal Brexit which has had already had a negative affect on the Pound. With comments from Michael Gove last week and other members of Boris’s cabinet throughout the week on their approach to negotiations in Brussels, suggesting a more stubborn stance, completely different tactics than the way of Johnson predecessor. Johnson already stating that come what may the UK would have to leave the European Union on the 31st October.

What does this mean for the Pound?

Boris Johnson is due to visit Michel Barnier in Brussels over the coming weeks to hold negotiations to come to a deal which will work for both the UK and the EU, during this time it will then become more clear which route the PM is to take. EU members have already made it clear that they are not to budge on their terms of the deal they’re seeking to get. This could spell trouble for an amicable Brexit as negotiations are likely to hit a brick wall with parties becoming stubborn and talks coming to halt. Should this happen then a no-deal is highly likely and will send the Pound into further woes edging closer towards parity against the Euro and new lows against the dollar.

Economic Data this week.

Monday

08:00 -EUR – Markit Services PMI
08:30 -GBP – Markit Services PMI
13:45- USD – Markit Services PMI
14:00 – USD – ISM Non-Manufacturing PMI
22:45 – NZD – Employment Change

Tuesday

04:30 – AUD- RBA Interest Rate Decision
06:00 – EUR – Factory Orders

Wednesday

02:00 – NZD – RBNZ Interest Rate Decision
02:00 – NZD – Monetary Policy Statement

Thursday

12:30 – USD – Initial Jobless Claims

Friday

08:30 – GBP – Gross Domestic Product
12:30 – USD – Producer Price Index ex Food & Energy
12:30 – CAD – Net Change in Employment
12:30 – CAD – Unemployment Rate