The pound weakened half a cent through the day against both the USD and EUR as the Withdrawal Agreement seemed increasingly certain to fail. But it didn’t get the chance. While it dropped even further after news broke that the Speaker of the House of Commons was refusing to allow the deal to be brought back to the house in its current form, it picked up some of those losses in the evening. Even so, a distinctly shaky start to the week.
There was nothing of note on the economics calendar yesterday, in contrast to today which sees some interesting data. The most influential will be unemployment, followed by average earnings for January which is expected to hold steady at 3.4%. Tomorrow we have inflation for the year to February.
It all pales into insignificance compared to Brexit, however. Some clarity may be offered today on how the Government will proceed. No deal appears to be back on the table, but so does a long extension to Article 50.
