The markets – and politicians – are watching with baited to see the result of EU leaders’ vote on a Brexit extension. The general feeling is that an extension will be agreed, but it remains to be see what form it will take. Theresa May will address the meeting at 16:30 this evening, after which EU leaders are expected to make their decision. Commentators say that dates ranging from December 2019 to March 2020 have been mentioned.
The pound drifted downward yesterday, but any significant movement will likely come this evening. Both Labour and Conservative MPs have said that significant progress has been made in cross-House talks. If no result does eventually emerge into a deal, however, it will be back to the Commons, as May has said MPs will again vote on a series of options.
Today, we also have a number of significant economic releases, including the UK’s balance of trade, forecast to come in at -1.2bn, up from -3.825bn. Construction output is also expected to have increased 0.2% year on year, as is manufacturing production.
