Whilst last week was characterised by acute Sterling volatility, price action in major currencies has so far this week been very muted, in part because of a very light calendar of tier-one macro data releases.
The Dollar, Sterling, Euro, Swiss Franc and Aussie and Kiwi Dollars have been trading in narrow ranges. In particular the GBP/USD cross has been oscillating around the 1.295 level as markets await tangible developments on the Brexit front. The British parliament is due to vote today and in coming days on the parliamentary timetable and a number of legislative amendments, with Prime Minister Johnson still seemingly hopeful that the House of Commons will this week vote through the Withdrawal Agreement Bill – the legal text which underpins the UK’s exit from the EU. It remains unclear at this stage whether the WAB will be voted through or whether a further delay to negotiations with the EU will be triggered.
