13/03/2017 - Britain Draws up Brexit Contingency Plan 

GBP

Britain is currently drawing up contingency plans for the unlikely event it has to walk away from divorce talks with the European Union without a deal, Brexit minister David Davis said on Sunday.  Prime Minister Theresa May is set to begin exit talks by the end of the month.

Marking the beginning off Britain's most complex set of negotiations since the end of World War Two. The outcome will shape Britain's political and economic future. Before May can begin negotiations, she must finish passing the legislation that gives her the right to formally notify the EU of Britain's intention to leave and start a two-year negotiating period as set out in the EU's Lisbon treaty. The laws are expected to be finalised in a series of votes early  as this week. 

Ahead of the start of negotiations, a committee of lawmakers warned it would be a serious dereliction of duty if the government failed to plan for the possibility of not reaching an exit deal.

EUR

The euro hit a more than four-week high against the dollar on Friday after a report that the European Central Bank had discussed the possibility of raising interest rates before the end of its quantitative easing program. It has been said some ECB policymakers had suggested hiking rates from their current record lows before the end of QE stimulus, but that the discussion was brief, and the idea did not have broad support.

USD

The dollar also was weighed down by the February U.S. non-farm payrolls report showing wages rose less than expected. This once again raises the concerns of many FOMC members about  the quality of jobs being created against the number of jobs being created. That tempered expectations of a spate of interest rate increases this year by the Federal Reserve.

Fed fund futures prices showed investors see a 93 percent chance of an increase in U.S. overnight interest rates this month, however that number was close to 90 percent before the data was released.

Key Announcements

13:30 – EUR – ECB President Mario Draghi Speaks