Macron’s reveals met with staunch criticism from Pro-leave MPs who identified the Irish backstop as one among many issues in need of a resolution. This threw doubt on desires that any alternative proposal to the backstop will gain Parliamentary right. Sir Bill Cash, the Chairman of the House of Common’s European Scrutiny commission, was sceptical: “You can’t restore self-government as a cut and paste operation and I am sure they know that – taking parts of the withdrawal agreement. We will be governed for a troop of years by the other 27 member states under the existing design withdrawal agreement… even with the backstop removed.”
In financial news, pound traders are showing signs of anxious anticipation onwards of Bank of England (BoE) Governor Mark Carney’s evening speech at the Jackson Pocket Symposium. Any dovish comments about the state of the UK economy could creep on Sterling.
Meanwhile, the euro failed to gain on the pound today as remunerative woes and the looming potential for a near-term German recession haunt the segregate currency.
This follows yesterday’s German manufacturing PMI for August which remained mired in contraction stamping-ground, confirming expectations for weak growth in the third quarter.
Lee Hardman, a Currency Analyst at MUFG, maintained yesterday’s PMIs would exert further pressure on the European Leading Bank (ECB) to “deliver further stimulus to support growth.”
Euro investors settle upon be looking to the US and the Jackson Hole Symposium today. Any indication of a slowdown in the US saving could potentially result in a boost for the single currency because of its contrary correlation with the US dollar.
The pound euro exchange rate is plausible to remain volatile into next week as hopes for a successful UK-EU compromise perpetuate to wane.