A new Brexit vote is going to take place

Weekly Report - 18/03/2019

More Brexit


Exciting week ahead regarding the ongoing Brexit deal. A new Brexit vote is going to take place in the following days. A vote that supports the agreement probably will lead to a 90-days extension. Now on the flip side, a vote against the deal will probably create uncertainty and chaos in the country. More to that the EU member states must all accept also the extension to come into effect. They may push for a significant longer extension than the 90 days. Another important driver for the GBP is Thursday’s monetary policy decision that is not expected to produce too many shocks. The BoE will likely not give any hints until there is some certainty on the Brexit deal.

Week that was

Last Friday the UK parliament voted for a delay regarding Britain's withdrawal from the European Union. The GBP paused for a bit but stayed on course for its biggest weekly gain in more than 60-days.

The Japanese yen deleted the one-week lows after the Bank of Japan kept its policy the same, but also due to a report that North Korea is considering to suspend nuclear talks with the U.S.

GBP latest trading was at $1.3250, falling further from Wednesday's nine-month top of $1.3378.


Main Focus This Week

The focus this week will be on the USD with Wednesday’s FOMC judgment although the main driver will be the FOMC forecasts and press conference. It will also be an interesting week for the AUD with the RBA meeting minutes on Tuesday that could provide more hints on the RBA’s outlook on rates for 2019. The RBA Statement had failed to show chances of a rate reduction, which gave support at the start of the month.


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