Turmoil out of the UK is set to continue due to disagreements over Theresa May’s draft Brexit deal.

The EUR/USD opened the day at $1.13065 and climbed in the early hours, hitting $1.13511 mid-session. It then fell off a cliff as the euro tumbled to a low of $1.12694. However, the euro rallied off that low as it surged to a high of $1.13616 in late trading. It has come off those highs and is currently trading at $1.13215. The pound was hammered overnight as the fallout from the proposed Brexit deal continues. The GBP/USD opened the session at $1.29828 and seemed to be travelling well, bumping up to a high of $1.30291 early. As news broke of unrest in the government over the draft Brexit deal, the pound began to sink. It fell sharply heading into late-session trading and while the losses became more gradual later in the day, the pound fell over three cents from its high and suffered its biggest single day loss this year as it plummeted to a low of $1.27201. It is still struggling at the moment, currently trading at $1.27742.

The Dow finally returned to form overnight after opening at 25,071.66. The index climbed to 25,195.55 before falling to lows of 24,773.60. However, the Dow bounced off that low as it powered its way to a high of 25,348.44. It is not far off those highs, currently trading at 25,285.30. The Dax continues to be a volatile trade as it is affected by Brexit negotiations as well. The German index opened the day at 11,408.02 and climbed to an early high of 11,499.10. It began its slide shortly after that, falling to a low of 11,250.10 late in the day. However, it bounced off those lows and regained most of those losses, closing at 11,438.20.

The day ahead looks set to be another volatile one as the UK government reels over the fallout from the draft Brexit deal that was supported by the majority in Theresa May’s cabinet. Among those to resign it the UK’s Brexit secretary. Several other ministers have quit the cabinet in protest, while there are also others who are calling for the PM herself to resign. All this makes for a volatile time for markets.

Data set for release today includes:

UK – CB Leading Index

Australia – CB Leading Index

China – Foreign Direct Investment

Canada – Foreign Securities Purchases, Manufacturing Sales

US – TIC Long-Term Purchases, Industrial Production, Capacity Utilisation Rate

Europe – European CPI & Core CPI, Italian Trade Balance, German WPI, ECB President Mario Draghi and German Buba President Jens Weidmann speak

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