- The Euro remains the strongest currency this week
- US jobless claims later today
By Killian Greenwood
Sterling is trading in a narrow range ahead of the important parliamentary vote on Tuesday as Theresa May is engaged in a row with David Davis regarding claims that she wants to tie Britain to the EU customs union indefinitely as part of a backstop plan on the Irish border. Mrs May had planned to send the proposal to Brussels this week, however, she has been forced to put it on hold after Davis has led a rebellion by Eurosceptic cabinet ministers.
The Brexit Bill will be returning to the House of Commons next week, after the House of Lords suggested 15 amendments to it. Tory chief whip, Julian Smith, sent a letter to his Conservative colleagues announcing the European Union Withdrawal Bill will be coming back to the Commons on Tuesday 12th June. He requested that all Tory MPs be on the parliamentary estate for the entire day as there will be several votes on the bill, which has suffered 15 defeats at the hands of the House of Lords so far.
The Euro remains the strongest currency this week as the European Central Bank (ECB) is preparing to debate the end of Quantitative Easing (QE) at next week’s meeting. The single currency strengthened yesterday after the ECB’s chief economist Peter Praet sounded upbeat in his speech. He said that “a look at the sectoral make-up of the most recent developments in the job market is encouraging.” Data continued to signal employment creation across sectors and countries and measures of employment show that the “upward trend” has steepened over the past year. Markets are now pricing in a 70% chance of a Eurozone interest rate rise in June 2019.
This morning, German factory orders missed expectations at -0.1% from 3.6% expected. We await Eurozone Revised Gross Domestic Product at 10:00. This afternoon, sees US initial jobless claims and US continuing claims at 13:30.