Are the pound’s rallies starting to run out of steam as the Brexit D-day approaches this week? Or will there be a last-minute plot twist?
U.K. manufacturing PMI (Nov. 1, 9:30 am GMT)
The only medium-tier report due from the U.K. this week is its manufacturing PMI set for release on Friday’s London session.
Analysts are expecting to see a dip from 45.3 to 45.2 to reflect a slightly faster pace of industry contraction, and a weaker than expected read could confirm that Brexit uncertainties continue to weigh on the manufacturing sector.
Just a few days left until the U.K. officially leaves the EU! Or can the Brexit date still be pushed back?
As it is, EU officials aren’t keen on granting any extension past October 31 unless the U.K. government makes a decision on snap elections. The Parliament vote on this matter is due on Monday’s London session.
Polls are indicating that support for the Conservative Party stands at 40% while Labour is at 24%, with members of the opposition maintaining that they will either abstain or vote against snap elections.
Note that PM Johnson’s past couple of attempts to call for a general election have been rejected, and he needs a two-thirds majority in order to get the polls going. His political rivals refuse to support the idea unless the risk of a “no deal” Brexit is eliminated. Talk about a catch-22!
As for the deal itself, there has still been a lot of back and forth, which has been the status quo anyway for the past months. The latest version that Johnson has been able to negotiate with the EU involves a customs border on the Irish Sea, and it has passed the second reading in the House of Commons.