Sterling was able to keep its head afloat as some of its counterparts fared worse last week, but will its luck run out now that economic data is scarce?
BOE Inflation Report Hearings (Feb. 26, 10:00 am GMT)
Guv’nah Carney and the rest of the BOE policymakers will have a chance to share more thoughts on monetary policy and economic outlook as they testify in front of parliament this week.
While their latest forecasts on growth and inflation will be discussed, Brexit is likely to take center stage as MPC members would likely be asked what kind of measures they’d put in place to ensure the U.K. economy can keep calm and carry on in any scenario.
Keep in mind, however, that Carney has been optimistic that “The financial sector is resilient. Corporate balance sheets are strong, and the labour market is tight” during the the BOE statement presser earlier this month. Do keep tabs on his speech this Monday as it might provide some clues on whether or not his Brexit mood has shifted since the latest developments.
Brexit, Brexit, Brexit
Time check? 32 days to go ’til Brexit!
Progress check? Still not much to report, but rumor has it that a 60-day extension to the divorce date might be given.However, European Commission President Juncker doesn’t seem optimistic that a “no deal” Brexit could be avoided as neither side would likely budge even with a couple more months to negotiate.
As it is, PM May is losing a lot of political support as a number of MPs have quit last week. And after Juncker met with May, he seems even more convinced that No. 10 no longer has control over things. Still, May assured after their meeting:
“I’ve underlined the need for us to see legally binding changes to the backstop which ensure it cannot be indefinite, that’s what is required if a deal is going to pass the House of Commons.
We’ve agreed that work to find a solution will continue at pace, time is of the essence and it’s in both our interests that when the UK leaves the EU it does so in an orderly way.”
As usual, there have been calls for May to step down but she insists on staying on and calling for another vote on a Brexit deal by March 12.
Missed last week’s price action? Read the GBP price review for February 18-22!