Brexit will take centre stage again this week as the U.K. Prime Minister Theresa May will reveal her latest EU divorce bill. So how will it play out this week? On Tuesday 12th March, MPs will vote again on the PM’s deal; if MPs vote in favour of May’s deal, the U.K. will Brexit with a deal on 29th March. If however MPs reject the PM’s proposal, there will be another vote on 13th March whether to leave without a deal; if MPs vote in favour of this, the U.K. will Brexit without a deal. Again if MPs vote against a No-deal Brexit there will be another vote on 14th March on whether to extend article 50; if MPs favour this then the U.K. will ask for a short extension. It is a vital week for the Pound as investors look forward to news circulating around Brexit. Rumours amongst onlookers suggest article 50 will be extended with MPs voting against the Prime Minister’s plan. We have already seen GBPUSD fall this morning to 1.2961 at 09:24 GMT.
European markets traded higher this morning. CAC 40, DAX 30, EU STOXX 600 and FTSE 100 were all higher. This came as Deutsche Bank has agreed to informal merger talks with Commerzbank to detract any takeover bids of the latter by other European banks. If successful it will become Europe’s second largest bank.
In other news, Dow futures were lower on the back of Boeing’s share price falling 10% after the crash of Ethiopian Airlines 737 Max 8 jet. This was the second crash within five months involving a new type of Boeing aircraft as in October last year a Lion Air Boeing 737 Max went down after taking off from Indonesia.
On data front, we have the monthly US Core Retail Sales and Retail Sales at 12:30 GMT.
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