If you’re buying Euros, it might interest you to know that the Euro has lost more than 0.5% against the Pound today, as Brexit uncertainty and global trade wars weigh on German manufacturers. IHS Markit’s Manufacturing Purchasing Manger’s Index (PMI) sunk to 44.1 in March, and a score below 50 represents contraction. The data made for miserable reading and was the worst recorded for more than seven years.
In fact, 14 of the past 15 months have now shown a falling figure, a worrying sign for Europe’s leading economy. Given the German economy’s reliance on its factories and the fact that Germany narrowly avoided a recession in Q3/Q4 last year, Europe’s largest economy could be coming dangerously close to entering a recession.
UK government proceeds to second round of indicative votes
Meanwhile in the UK, Sterling has found support as MPs look towards another round of indicative votes this evening. Once again, the speaker of the House of Commons, John Bercow, will select which motions are put forward to the House tonight.
Conservative MPs will be whipped into voting against a business motion initially, before being given the ability to vote freely on the other options. It is thought that up to 28 Tory ministers may vote for the UK to stay within a customs union.
The two motions that received most support last week were ‘to remain within a customs union’ and a ‘second referendum.’ It is likely that similar motions with small amendments will be tabled in a bid to gain a majority. If either of these motions gain significant support, the Pound could receive some support, as the likelihood of leaving the EU on April 12th without a deal decreases.
Elsewhere, despite repeated calls from her own party, Prime Minister Theresa May is insisting that she will not resign, as she continues to persevere in hope of getting her withdrawal bill signed off by fellow MPs.
Whilst Theresa May pushes for a possible fourth vote on her deal, Jeremey Corbyn is pushing for a general election.
Please feel free to get in touch using Chris.Doane@purefx.co.uk if you would like to discuss the upcoming political movements surrounding Brexit and how they could potentially impact your currency exchange.