
Market Brief: UK willing to improve Brexit bill offer
11 Sep 2018
German Chancellor Angela Merkel’s future is hanging in the balance and she is facing perhaps the biggest challenge of her political career.
Today's data releases |
Key levels | |||
---|---|---|---|---|
09:30 | UK public finances | Support | Resistance | |
13:30 | Chicago Fed Nat Activity index | GBP/USD | 1.3057 | 1.3338 |
15:00 | US existing home sales | GBP/EUR | 1.1071 | 1.1352 |
15:00 | ECB's Coeure chairs panel |
Market overview
Merkel said in a TV interview yesterday that she is not keen to lead a minority government and doesn’t fear holding another election – however this stance may be at odds with other members of her party as they worry that the rightwing nationalist AFD party will be able to win even more votes this time round. This uncertainty made for a volatile day for the euro yesterday as it fell to a low $1.17 before climbing to over $1.18 and then retracing to mid $1.17 again. It has stabilised in early trading although traders will be keeping an eye on any developments.
Newspaper reports suggest British PM Theresa May has managed to win support from her ministers to increase the Brexit divorce bill in order to break the deadlock in talks next month. However her Eurosceptic colleagues warned that any increase in the financial offering must be conditional on a good trade agreement and a transition deal with the EU. Expectations are that May will hold off making the offer until the last possible moment, likely to be early December, and when she is certain it will progress the talks. “The UK and the EU should step forward together” May’s office said in a statement indicating their expectation that the European negotiators must match the UK’s offer with a commitment to start discussing trade agreements.
The rumble in Zimbabwe continues with Robert Mugabe still refusing to resign. A Zanu-PF official said a motion to strip him of the presidency would be presented to parliament today and that the process could take just two days. It is reported that Mugabe, the oldest world leader, is in talks with Emmerson “the Crocodile” Mnangagwa, whose sacking as vice president triggered the military takeover. He is widely expected to be the next president, with ZANU-PF announcing him as their candidate for the proposed 2018 general election, and has strong support from the military.
Newspaper reports suggest British PM Theresa May has managed to win support from her ministers to increase the Brexit divorce bill in order to break the deadlock in talks next month. However her Eurosceptic colleagues warned that any increase in the financial offering must be conditional on a good trade agreement and a transition deal with the EU. Expectations are that May will hold off making the offer until the last possible moment, likely to be early December, and when she is certain it will progress the talks. “The UK and the EU should step forward together” May’s office said in a statement indicating their expectation that the European negotiators must match the UK’s offer with a commitment to start discussing trade agreements.
The rumble in Zimbabwe continues with Robert Mugabe still refusing to resign. A Zanu-PF official said a motion to strip him of the presidency would be presented to parliament today and that the process could take just two days. It is reported that Mugabe, the oldest world leader, is in talks with Emmerson “the Crocodile” Mnangagwa, whose sacking as vice president triggered the military takeover. He is widely expected to be the next president, with ZANU-PF announcing him as their candidate for the proposed 2018 general election, and has strong support from the military.