Global Themes

British pound jumps after May’s crushing defeat

The British pound defied expectations and jumped strongly higher this morning after the UK government suffered a massive defeat over its Brexit deal plan.

The GBP gained on hopes that the crushing loss makes a second referendum more likely or, at the very least, means the Brexit end date is likely to be delayed until mid year.

Theresa May’s plan lost by 230 votes in largest loss for a sitting UK government in modern history.

May faces a “no confidence” motion tomorrow but appears likely to remain in power.

Dow moves higher

The USD inched higher in most markets overnight as US equity markets climbed above the major technical levels seen at the one-month highs.

The GBP was broadly flat after a volatile session.

Sentiment

The markets will be looking ahead to key measures of sentiment today as a global economic slowdown begins to sap confidence.

Tonight the US Federal Reserve’s Beige Book survey will be closely watched.

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