08/03/2017 - May suffers second defeat in Lords

GBP

The Pound lost ground throughout yesterday’s session on expectation that Theresa May will face  a second defeat on the Brexit Bill. 

Late last night the Lords dealt another blow to the Prime Minister with an amendment forcing Parliament to be given a “meaningful” vote on the final EU withdrawal agreement. The amendment means the EU (Notification of Withdrawal) Bill will have to go back to the Commons for more votes, a process known as ‘ping-pong’. The change also means May must win a future vote in Parliament if she decides to see through her threat of potentially pulling Britain out of the EU with no deal at all.

The Pound did receive some minor support after The Organisation for Economic Cooperation and Development (OECD) raised its projections for 2017 GDP growth to 1.6 per cent, as it revised up forecasts it slashed after the Brexit vote.

The economics organisation revision is the largest across the major economies surveyed by the OECD which was a change of 0.6 percentage points since its September prediction.

The OECD and other influential economics bodies, including the Bank of England, have steadily upgraded forecasts of UK growth as the economy has proved resilient since the country’s vote to leave the EU. The BoE raised its prediction of growth this year to two per cent last month, and predicted consumers would dip into savings to sustain demand.

Key Announcements

12:30 – GBP – Annual budget release

13:15 – USD – ADP Non-Farm Employment change is expected to decrease to 184k

15:30 – USD – Crude Oil Inventories is expected to decline to 1.1M