New pics emerge of HMS Britain in the wake of historic rejection

January 16, 2019

A day of turmoil awaits, particularly in the UK, as the UK parliament rejects Theresa May’s Brexit deal.

The USD strengthened overnight, pushing paired currencies down. The EUR/USD opened the day at $1.14672 and climbed to an early high of $1.14888. The pair began its decline soon after that, with uncertainty surrounding the Brexit vote playing a role in it tumbling to $1.13810. It has managed to come off those lows and is currently trading at $1.14047. The GBP/USD was much more volatile which was to be expected. The pound opened at $1.28646 and climbed to an early high of $1.29148. Mid-session trading saw the pound begin its fall, with the losses increasing as it got closer to the vote. The vote sent the pound to lows of $1.26667 before a late surge saw it recover most of those losses. It rallied as high as $1.2885, before retracing back to its current level of $1.28638.

The Dow recovered some of the losses it suffered earlier in the week. The index opened at 23,891.11 and climbed in early trading to near-session highs of 24,086.30. Mid-session trading saw the Dow fall to lows of 23,847.12. The roller coaster was not finished for the Dow as it surged in late trading to a high of 24,094.54. It is currently trading at 24,035.39. The Dax opened at 10,935.86, or around 70 points higher than the previous session close. The German index spiked early to a high of 10,994.58 before falling to a low of 10,812.08 a few hours later. The Dax climbed off those lows and closed at 10,904.08.

The day ahead is filled with uncertainty as the fallout from the Brexit vote continues. As expected, the opposition Labour Party has put forward a motion of no-confidence in Theresa May’s job. This motion will be debated later tonight/ tomorrow morning. This could go two ways – Theresa May keeps her job as PM and tries to renegotiate a new Brexit deal, or the motion carries and a new general election is called. The heavy defeat suffered by the PM (432 votes to 202) means this was a resounding rebuke of the current Brexit deal. It’s reportedly the largest defeat for a sitting government in U.K. political history. Uncertain times lay ahead with so many different possibilities now entering the frame.

Data set for release today includes:

Europe – German Final CPI

Japan – Core Machinery Orders, PPI, Tertiary Industry Activity

US – Import Prices, NAHB Housing Market Index, Crude Oil Inventories, Beige Book

UK – CPI, Core CPI, RPI, PPI Input & Output, HPI, BoE Governor Mark Carney speaks

 

Disclaimer: The information in this website is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs. Accordingly, before acting on the advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs. We recommend you seek independent advice if necessary.