25/02/2019 - Brexit Vote 12th March

GBP

Over the weekend Prime Minister Theresa May said MPs will be able to have a fresh vote on the Brexit deal by 12 March. May ruled out holding another so-called "meaningful vote" this week but said "positive" talks with the EU were "still ongoing" and leaving on 29 March was "within our grasp".

Labour leader Jeremy Corbyn accused the prime minister of "recklessly running down the clock". On social media Corbyn said the move was intended to "force MPs to choose between her bad deal and a disastrous no deal".

May is also facing growing calls to say she would delay Brexit rather than leave the EU if no deal is in place by the end of March. A new plan from some Tory MPs says ministers could postpone Brexit until 23 May.

There was also speculation in the tabloids that Brexit could be delayed until 2021 under plans being explored by the EU’s most senior officials, at a time of growing exasperation over Theresa May’s handling of the talks.

USD

On Friday the Federal Reserve said The U.S. economy maintained “solid” growth through the second half of 2018, likely expanding “just under” 3 percent for the year, though consumer and business spending had begun to weaken.

In its semi-annual monetary policy report to Congress the Fed balanced its mostly positive outlook for a still growing economy against an array of emerging domestic and global risks. They also laid out why it had put further interest rate hikes on hold last month.

From a “deteriorated” appetite for risk among investors to a slowdown in China, the outlook for policy is “more uncertain than earlier,” the Fed said, noting “softer global and economic conditions.”

The Fed also said, noting that the recent 35-day partial shutdown of the U.S. government “likely held down GDP growth in the first quarter of this year.”

Fed Chairman Jerome Powell will testify before lawmakers in the U.S. Senate and House of Representatives on Tuesday and Wednesday to elaborate on the report in what could prove to be an important week for economic data and the central bank’s sense of where the economy is heading.

Key Announcements

GBP - 10:00 – BOE Governor Carney Speaks at a press conference in London