Theresa May will launch a high-stakes battle to sell her Brexit deal to parliament on Thursday, after clinching the support of her deeply-divided cabinet during a fraught five-hour meeting in Downing Street. Emerging from No 10 on Wednesday night, May said she believed “with my head and my heart” that her deal was the best one for the UK – and the only alternatives were no deal, or no Brexit. She said her ministers had taken a “collective” decision, to press ahead with finalising the deal in Brussels, which she will then have to bring back to parliament for approval; but it was clear there had been significant dissent. There were a series of dissenting voices from Brexit supporting ministers, as the meeting overran its intended length by two hours.
In main currencies, the recovery rally in the EUR/USD gathered pace in Asia as the US treasury yields remained unchanged despite upbeat comments from Fed’s Powell. Regarding GBP/USD, has found itself chained to the 1.3000 major handle as Brexit headlines continue to drag the Sterling up and down the charts. A tentative Brexit deal appears to be in the works, but plenty of legwork remains pending.
In commodities, Gold has also moved up from support near 1200. While the upmove continues, it could target 1230 on the upside. View is bullish while above 1200. Oil prices continued to fall on Thursday as data revealed crude inventories have been rising more than expected. Meanwhile, the Washington-based Energy Information Administration (EIA) said nearly 38 million barrels had been added to crude inventories in the U.S. in the past seven weeks. U.S. crude output from seven major shale basins is expected to hit a record 7.94 million bpd in December, the EIA said on Tuesday. Total U.S. crude production, meanwhile, stands at a record 11.6 million bpd, making the country the world’s biggest oil producer ahead of Russia and Saudi Arabia.
For today the high impact news in the economic calendar include: Employment Change, Unemployment Rate, Retail Sales m/m, Core Retail Sales m/m, Retail Sales m/m and last but not least the Fed Chair Powell Speech.