Rolling coverage of the latest economic and financial news, as sterling is buffeted by political dramaLatest: Pound rises to fresh five-month highPolitics Live: Johnson to push for ‘yes or no’ vote on dealSterling rallies despite government’s Super Saturday defeatBerenberg: Orderly Brexit now likelyRBC: Johnson may have the votes for BrexitIntroduction: Murky Monday in the City 2.43pm BST Trade war optimism, and hopes that a disorderly Brexit can be avoided, have lifted the US stock market.The S&P 500 index has jumped 0.5% in early trading, gaining 15 points to 3,001.78.U.S. stocks open higher https://t.co/GncxVeOkMt pic.twitter.com/JfXtNwjxn8 2.27pm BST Sterling is struggling to maintain its toehold over $1.30.The pound has dropped back from this morning’s five-month high, back to $1.298, and remains volatile.Current thinking is that the Speaker will likely not allow the MV4 to happen given the motion was already put forward and in his mind sort of voted on in the form of the Letwin amendment. If that is the case, then Johnson shifts to implementation and puts forward a Withdrawal Agreement Bill or WAB.The WAB would likely be attacked by remainers who will add things like a potential 2nd referendum or various other ‘wrecking’ clauses or amendments related to customs union. If the Speaker actually does move forward with MV4 then the focus will be the vote that was originally scheduled for Saturday. In the end, there is still a roadmap to a Brexit with a deal on Oct 31, but it will be tricky. Odds of a no deal Brexit have diminished significantly. Given there was no deal voted for on Oct 19 the PM was forced to ask for an extension from the EU, so we’ll hear more about that as well today with some talking about a potential ‘flexible’ extension to Feb 2020. Hard Brexit odds being reduced has GBP/USD well supported with a move up to 1.3000 in GBP/USD overnight. Continue reading…
Via: Pound hits .30 amid Brexit deal and trade war hopes – business live
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