Granted something of a Brexit respite, ahead of a hella hectic economic and political calendar next week, the pound was fairly quiet at Friday’s open.
Another chaotic, fractured evening for UK politics eventually saw MPs back an extension to Article 50, the length of which will be dependent on whether or not a deal is secured – namely Theresa May’s twice-rejected withdrawal agreement, which will likely go to a third vote – by March 20th. This was the expected outcome on Thursday, and led to little movement from the pound, which appeared to have already factored in the result.
GBP/USD, EUR/GBP
As Friday got underway sterling pulled back slightly, dipping 0.1% against the dollar, sending cable under $1.322, while dropping 0.3% against the euro to hit €1.167.
This contributed to the FTSE’s 0.3% increase, the UK index sitting at a 3-ish week peak of 7215. Though the session is arguably set to be quieter when compared to the rest of the week, the pound is still going to be sensitive to any signs of which way the Brexit winds will be as we head towards the next key date of March 20th.
Ahead of the region’s latest inflation data, the Eurozone indices were sluggish after the bell. The DAX remained the wrong side of 11600 as it fell 0.2%, but with the CAC climbing past 5350 thanks to an admittedly slender 0.1% increase.
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