The existing Brexit deal has once again failed to win the backing of a majority in parliament.
After a relatively quiet summer, volatility spiked in October as investors worried about rising rates, peak economic and earnings growth and geopolitical tensions.
This week the House of Commons demonstrated that a clear majority of Members of Parliament (MPs) are not willing to leave the EU without a deal.
The coming week is a very big week for sterling investors since the Chancellor will present a new statement on fiscal policy and there are a series of votes in the House of Commons to break the Brexit impasse.
European Central Bank meeting: Quantitative easing is coming to an end but low rates likely to persist
Today the European Central Bank (ECB), at its final monetary policy meeting of the year, confirmed that it will cease net asset purchases at the end of this year, in line with its previous guidance.
Last night a series of votes took place in the UK House of Commons. The purpose of the votes was to establish a potential way forward for the Brexit negotiations that could command the support of a majority of members of Parliament (MPs).
There has been significant progress in the Brexit negotiations in the last 48 hours.
At the latest Monetary Policy Committee (MPC) press conference, Governor Carney noted that businesses are taking a very cautious approach right now because of the uncertainty around the outcome of the ongoing Brexit negotiations.
We believe the Brexit negotiations will conclude with a relatively “soft” Brexit. But, as current media headlines show, there are still a number of compromises that need to be made on both sides to seal the deal.