A spokesman for the Labour Party commented: “Jeremy Corbyn reiterated Labour’s offer to the prime minister to agree a reasonable timetable to debate, scrutinise and amend the withdrawal agreement bill, and restated that Labour will support a general election when the threat of a no-deal comes off the table.” Sterling remained unmoved as UK markets awaited an official European Union decision on a Brexit extension.
However, some relief came as Ireland’s Taoiseach, Leo Varadkar, endorsed European Council President, Donald Tusk’s proposed delay which would extend the deadline to 31 January 2020.
Mr Tusk tweeted: “Following the PM’s decision to pause the process of ratification of the withdrawal agreement, and in order to avoid a no-deal Brexit, I will recommend the EU27 accept the UK request for an extension. For this I will propose a written procedure.”
We could see the pound rise against the euro if a formal verdict on the PM’s extension request arrives as this would quash fears for a no-deal outcome on October 31.
Meanwhile, the euro remained motionless today, with European markets in a reticent mood ahead of European Central Bank President Mario Draghi’s final policy decision as investors speculate on the prospect of a Eurozone recession.
Antoine Bouvet, a Senior Rates Strategist at ING Bank, was sceptical: “There might be a degree of reluctance to price further easing, even in light of increasing economic gloom, given the increasing awareness that monetary policy has reached the limits of what it can do and would like to pass on the baton to fiscal policies.”
Brexit developments will stand front and forward over the next couple of days, with any indications that a UK general election might be on the cards likely to increase market uncertainty and infuse the GBP/EUR exchange rate with fresh volatility.
Daily Express :: City and Business Feed