Sterling jumped half a cent against the euro this morning after the European Court of Justice said Britain has the right to unilaterally withdraw its notice that it is leaving the European Union. The advice is non-binding but the prospect of a route out of the Brexit process cheered the market, even as Prime Minister Theresa May presses ahead with plans for a parliamentary debate on her proposed divorce deal with the EU.
This morning saw construction PMI released, figures arrived at 53.4, above the forecast of 52.5 showing the industry is still expanding late in the year. Elsewhere Bank of England Governor Mark Carney had been speaking along with three BOE deputy governors about the Brexit withdrawal agreement before the treasury select committee. Investors will be listening closely to get hints on the likely economic impact of Brexit and to see how the BOE will react.
At midday, a five-day debate will start, with PM May trying to win over critics in her Conservative party and opposing groups, however chances of getting her deal approved next week are seen by investors as increasingly futile. This afternoon from the US, FOMC Member Williams is holding a press conference around local employment and labour force trends. As audience questions are expected investors will be paying attention as unexpected clues on future monetary policy may be released.