The UK parliamentary Brexit debate continued Thursday with a focus on the economy

Global equity markets declined sharply on Thursday before finding respite with demand for defensive assets also fading to some extent as the yen surrendered gains.

US bond yields declined further with a dip in Fed Fund rate expectations undermining the dollar amid expectations of a pause following a December hike.

Oil prices weakened as OPEC failed to finalise a deal and looked to target a smaller than expected output cut with commodity currencies also generally vulnerable.

European currencies were still unsettled by political concerns.

Cryptocurrencies registered sharp losses with bitcoin sliding to 15-month lows.

The UK parliamentary Brexit debate continued Thursday with a focus on the economy. There was further speculation that the December 11th vote could be postponed, and uncertainty remained extremely high amid reports that the government could also introduce further amendments to win over sceptical Conservative MPs. Sterling gained an element of protection from expectations that a ‘no-deal’ outcome would be avoided and that the UK could end up staying in the EU.

The UK currency was, however, hampered by the slide in risk appetite while gilt yields continued to decline, and energy prices also retreated which hampered Sterling.

Overall, there were gains against the dollar as the US currency lost ground while GBP/EUR retreated to test 1.1180 in relatively narrow ranges. Sterling was unable to sustain the gains and there will be the potential for choppy trading during Friday with position adjustment an important feature as rumours continue. Markets will be wary of substantive political developments over the weekend as GBP/USD settled around 1.2765.

Economic Calendar

Expected Previous
10:00 EUR Euro-Zone GDP (Y/Y) 1.70% 1.70%
13:30 USD Non-farm Payrolls (M/M) 205K 250K
13:30 CAD Canadian Unemployment Rate (M/M) 5.90% 5.80%
15:00 USD Michigan Consumer Sentiment 97 97.5

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.