Foreign Exchange Daily Market Update 20/06/18

Wed, June 20, 2018

Pound weakens as commons vote on Brexit and BOE Decision.

Sterling touched a fresh seven-month low against the dollar today ahead of a second vote on Parliament getting a say on a final Brexit deal with the EU.

GBP fell for a third straight day after a similar vote in the House of Lords saw the government defeat. If they vote in favour of Parliament having a “meaningful vote” it could impact Theresa May’s political future and how Brexit negotiations take. The risk of the BOE will push back on the timing of interest-rate hike is also weighing down the pound.

Today’s vote on the EU withdrawal bill amendment could will be a focal point of market anxiety and fears about the British political outlook on Brexit.

If the Commons dismiss the amendment the pound “should remain vulnerable under this outcome, given the threat of a Hard Brexit. 

GBP fell 0.1% to $1.31528 this morning, after touching $1.3148, its lowest since November. Sterling felling to 1.137 from 1.1402 against the Euro.

•  Vote could impact PM May’s political future, Brexit path
•  Economists doubtful on BOE August rate hike

Data to look out today.   

13:30 EUR Draghi speaks in Sintra Portugal.

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