Bank of England unlikely to budge, but room for a hawkish meeting

Thursday’s Bank of England meeting will likely see the central bank remain in a bit of a Brexit bind, but clarity over the recent downturn in economic data and the future of inflation could prove net hawkish for the market. Brexit uncertainty, a slumping Eurozone...

Draghi is an optimistic dove

A new species has been discovered today in the Governing Council; the optimistic dove. European Central Bank President, Mario Draghi, once again displayed the variety of tones in his plume as he delivered a dovish message, but continuously guided the attention of the...

Tonight’s vote a barometer for parliamentary appetite for May’s deal

If May’s boisterous reception in the commons and tweets from Tory MPs are to be believed, May is more likely to survive tonight’s vote than not. This appears to be the market’s base case, with sterling rallying slightly this morning towards the 1.26 handle against USD...

UK investors continue to hedge in light of greater uncertainty

Following on from yesterday’s humiliating dodge, May now goes to Brussel’s to discuss going forward with Jean-Claude Juncker. Little has changed to our base case, despite the formal rejection of her draft Withdrawal Treaty not taking place. The $1.25 level has been...