The Pound struggled yesterday after investors sold Sterling on fears of political upheaval after Prime Minister Theresa May addressed Conservative Party lawmakers at a private meeting in parliament after anger at her Brexit negotiating strategy prompted some of them to discuss replacing her. At the meeting May asked to address her divided party’s powerful “1922 Committee” where she received questions from lawmakers, some of whom have discussed forcing a leadership contest.
With just over five months to go until Britain’s scheduled departure from the EU on March 29, May’s Brexit negotiation has stalled over a disagreement on the Irish backstop.
The single currency fell and the bloc’s government bond yields dropped on Wednesday after data showed business growth in the single currency area lost far more momentum than expected, as trade tensions and worries over Italy overshadow the economy.
A survey showed euro zone business growth decelerated faster than anticipated as the final quarter of 2018 began, dragged down by waning orders that dented confidence. Germany’s economy started the fourth quarter on the back foot, with private-sector activity slowing to the weakest since 2015 and factory orders contracting for the first time in four years.
12:45 – EUR: Main Refinancing Rate is expected to remain at 0.00%
13:30 – EUR: ECB Press conference
13:30 – USD: Core durable goods orders is forecast to increase to 0.5%