Over the weekend, Theresa May was challenged by the House of Lords regarding the customs Union Brexit bill on UK leaving the union – Brexit voters believe this is a main element to “Brexit”, however, the EU is reluctant in accepting changes on the present Irish border matter.
Word is that Theresa May could propose a customs union deal to the EU instead of being part of the present customs union. It remains to be seen what is offered, as she may face backlash from her own party if she accepts the terms of the current customs union. No doubt this will also be damaging to Sterling, which has been bearish since Carney’s comment regarding May’s rate rise.
The latest commodities rally and geopolitical pressures including trade concerns, are the reasons behind the US Dollar reaching multi month highs in comparison to several other currencies. Yesterday, the Treasury yield reached 3% for the first time since 2014 showing that these price changes have influenced the rates market.
Data front for USD is looking quiet today, data for Durable goods will be revealed tomorrow, with the preliminary GDP data for QI following on Friday.
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