13/11/2018 - Brexit Uncertainty Weighing On The Pound

GBP

The Pound had another volatile day yesterday after the EU’s chief Brexit negotiator Michel Barnier told ministers from the remaining 27-member states that the main elements of an exit treaty text were ready to present to the UK cabinet on Tuesday. Barnier warned ministers however that no deal has been sealed yet on Britain's departure from the bloc.

In the tabloids again yesterday was news of in-fighting and division within UK parliament after multiple cabinet ministers expressed significant doubts about the prime minister's preferred Brexit plan from the start. Parts of Theresa May's plan were described as "worrying", "disappointing" and "concerning" by members of her team.

May is trying to arrange an agreement in cabinet on the current negotiations in time for a hoped-for summit in Brussels later this month. Her preferred plan for future relations with the EU after Brexit were agreed at Chequers in July, in a marathon cabinet meeting. Afterwards, Mrs May said the cabinet had reached a "collective" agreement, although former Brexit secretary David Davis and ex-foreign secretary Boris Johnson resigned from the Cabinet in protest.

Key Announcements

09:30 – GBP: Average Earnings Index expected to increase to 3%