Yesterday, the European Court of Justice’s Advocate General, Manuel Campos Sánchez-Bordona, said that the UK could revoke Article 50 and, in effect, cancel Brexit. Importantly, he said that this could be done without the EU’s approval – which lit up the eyes of those hoping the UK remains in the EU.
The news helped sterling jump against the dollar and make some gains against the euro too, although the moves proved short-lived and by the end of the day, the pound had actually lost ground against both currencies. Let’s remember that the moves against the dollar are likely to be more pronounced in the next few days, as what is good/bad for the UK in terms of Brexit, is good/bad for the EU too.
It is a fairly busy day in the eurozone today, which begins with a speech from Mario Draghi. We will also see composite and services PMI from Germany and the eurozone in November, while retail sales from October are also on the schedule. Both the month-over-month and year-on-year figures are expected to increase by some margin from the previous periods, so it will be interesting to see if those predictions are accurate.
