The Brexit turmoil continues, as does the pounds volatility, with Theresa May continuing to battle with a divided Parliament over the best way to exit the EU. In a final attempt to break the deadlock, PM May met with the leader of the opposition, Jeremy Corbyn, in a bid to get more Labour MP’s to back her deal. Due to meet with Corbyn again today it is likely they will be discussing what compromises will be required to secure some much needed backing. The markets have seen this as a move towards a softer Brexit which is renewing strength in the pound against a basket of currencies.
Yesterday evening, a vote in Parliament was victorious in securing legislation that will force May to ask for a second Brexit delay, possibly reducing the chances of leaving with no deal. The EU have previously said they would be open to a further extension; however, it would need to be a long delay for them to grant approval. No deal is currently the biggest downside risk for sterling, and the latest development could help steady the pound.
On the data front, weak German factory data caused an early dent to the euro. Forecast to increase to 0.3% from -2.1%, the data released at -4.2%. Poor data from Europe’s largest economy will cause concern among investors across the eurozone. At 12.30 BST, the European Central Bank will release the minutes from their last meeting. Investors will listen closely for hints and clues to future monetary policy as well as any discussion on interest rates or quantitative easing.