Good morning,
Johnson, following his block on a meaningful vote yesterday as expected, will now target a three-day turnaround to pass his withdrawal agreement bill, stick to his ‘do or die’ agenda. This evening at 20:00 CEST, the vote commences on first the principle of the bill, then the timeframe.
If MPs intentionally aim for a delay on this and defeat the proposition in order to acquire more time, the likelihood of leaving the deadline will be greatly diminished. There are already outcries that the volume of detail and scrutiny required for the details of the bill ae much too grand to be compressed into a three-day sprint.
Johnson will likely call for a general election to be agreed this week if the bill is rejected, which would be targeted to be held in November.
Cable refrained from trading outside of a relatively tight range between lows of 1.2970 and 1.30, proving a stubborn resistance yesterday. We open a little lower this morning as a long day ahead waiting for an outcome again holds markets back from dedicating a directional bias.
The USD continues to struggle, with the Dollar Spot Index falling 0.1% over the course of yesterday – even in light of a more upbeat tone towards the US/China trade talks thanks to Trump’s Twitter.
Have a great day.