GBP fell to its weakest levels since January on Wednesday as Britain’s prime minister made a last-ditch bid to get a Brexit deal through parliament before she leaves office, though scepticism from the opposition Labour Party capped gains.

After failing three times to get parliament’s approval for her EU divorce deal, Theresa May said she would present a “new, bold offer” to lawmakers with “an improved package of measures” in a final attempt to secure a Brexit deal.

News reports suggest it (May’s package) is a retread of old ideas and as long as that is the case, the market is going to be very sceptical,

The leader of Britain’s opposition Labour Party said he would not support May’s new move to push through her Brexit bill if it was fundamentally the same as the bill that had been defeated three times before.

This inability of the British parliament to compromise on the terms for exiting the European Union has led the market to take a much more binary view on the outcome, between a so-called hard or no-deal Brexit and a second EU referendum.

Adding to this feeling is a poll that showed Boris Johnson, a prominent leader of the Brexit campaign, as top choice among members of Britain’s ruling Conservative Party to replace May as prime minister.

Though there is widespread scepticism that any such deal will get ratified by lawmakers, sterling fell further against the dollar to $1.2660 this morning. That followed a drop of 2.2% last week, its worst week since October 2017.

The British currency was down against the euro this morning once again at 1.1348.

Britain’s tumultuous divorce from the European Union was again in disarray on Friday as the opposition Labour Party declared last-ditch cross-party talks were dead in the twilight of Prime Minister Theresa May’s premiership.

Nearly three years after the United Kingdom voted 52% to 48% in a referendum to leave the EU, it is still unclear how, when or if it will ever leave the European club it joined in 1973. The current deadline to leave is Oct. 31.

Brexit talks between May’s Conservatives and the opposition Labour Party have ended without an agreement hours after May agreed on Thursday to set out a timetable for her departure in early June.

Labour leader Jeremy Corbyn wrote to May on Friday, informing her that talks had “gone as far as they can” due to “the increasing weakness and instability” of the government.

Corbyn said May’s government had become unstable and its authority had been eroded undermining confidence in the “government’s ability to deliver any compromise agreement”.

He said the party would oppose May’s thrice-rejected deal when it returns to parliament.

May’s hands have been tied, knowing that to make concessions to Labour would lead to fury in her divided party. Labour has feared that any compromises on issues such as workers’ rights would be torn up by May’s successor.

GBPEUR Falls to 1.1427 / GBPUSD Falls to 1.2759 at 11:09 am GMT

GBP fell sharply on Wednesday on growing expectations that Prime Minister Theresa May will again fail to get her Brexit deal approved and could soon face a leadership challenge.

Sterling has weakened more than 1% this month as deadlocked cross-party talks expose deep political divisions over how, when and even if Brexit should take place.

May plans to put forward her thrice-rejected Brexit deal in the week beginning June 3, to try to secure an agreement before lawmakers go on summer holiday.

But Britain’s opposition Labour Party said it would not ratify the deal if a compromise agreement is not reached with the government.

Those comments fuelled speculation that May will soon be ousted and pressured the pound.

The currency fell more than 0.5% to $1.2827, its lowest since Feb 15, and dropped around 0.4% versus the euro to 1.1448.

Sterling has fallen for eight consecutive days against the dollar despite mostly solid economic data in Britain in recent months.

The British pound was little changed on Friday as doubts about whether Prime Minister Theresa May could reach a Brexit agreement with her political opponents pressured the currency, while traders prepared for March economic growth numbers.

According to a Reuters poll of economists, Britain’s economy is not expected to have grown in March, after expanding 0.2% in February.

Momentum in the British economy has slowed in 2019 as uncertainty related to how and when Britain will leave the European Union has weighed on business investment. But the economy has also proven resilient, with British consumers continuing to spend.

Sterling on Thursday dropped to $1.2967, its weakest in May, pushed lower by media reports that talks between the ruling Conservative and opposition Labour parties to agree a Brexit deal had run into the sand.

The government, after delaying Brexit until the end of October, wants to put its repeatedly-rejected withdrawal agreement to parliament.

The pound was little changed at $1.3002, while against the euro it fell 0.1% to 1.1583.

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GBP weakened on Wednesday on signs that talks between Britain’s government and the main opposition Labour Party to break the Brexit deadlock may soon collapse.

The pound is falling as Brexit negotiations between Britain’s Conservative government and the opposition Labour Party lumber on with little success and as concerns grow about a challenge to Prime Minister Theresa May’s leadership.

All this following late Friday afternoon rallies in GBP after shocking local election results with voters insisting on cross party Brexit agreement being passed.

But the suggestion that the talks could be pronounced dead later on Wednesday by broadcaster ITV’s political editor took sterling down another leg.

“The announcement that the UK will take part in European elections confirms that cross-party Brexit talks aren’t going anywhere fast. This also refocuses attention on a leadership challenge to May

It fell towards $1.31, down 0.6 percent on the day, and also hit a six-day low versus the euro of 1.1613 , down half a percent on the day.

Global financial markets have been sent into a tailspin after Donald Trump risked jeopardising delicate trade talks with China by unexpectedly saying he would raise tariffs further on Chinese goods this week.

Stocks in China closed down 5.5% on Monday as investors in Asia Pacific were caught off guard by the US president’s tweets and reports indicating the government in Beijing might pull out of this week’s scheduled talks.

China’s ministry of foreign affairs said on Monday that Beijing was still preparing to send a delegation to Washington but did not say whether the country’s chief negotiator, Liu He, would be attending the meetings in Washington.

After weeks of warnings from many on Wall Street that price swings across global markets were too subdued, the American president’s threat to boost tariffs on China sent volatility soaring Monday. The VIX Index jumped 43 percent, the most since October — the start of a horrible quarter for U.S. equities. S&P 500 Index futures slid 1.7 percent and the Shanghai Composite fell 5.6 percent, the most since February 2016. European shares also dropped.

Whether they were a negotiating tactic or a sign of something more ominous, Trump’s tweets jolted markets that had been lulled in recent weeks by signs of progress in trade talks, a dovish turn by the Federal Reserve and better-than-expected corporate earnings. Investors who had grown accustomed to cross-asset volatility at or near historically low levels were once again forced to consider that all might not be smooth sailing.

Traders feared that Trump’s threat to raise tariffs on $200bn of Chinese goods to 25% on Friday from 10% and then target a further $325bn of Chinese goods could destabilise global financial markets that had been boosted by what appeared to be encouraging progress in the negotiations.

The huge drop in Chinese shares follows a three-day national holiday and came despite a move on Monday by China’s central bank to cut reserve requirements for smaller banks to help boost lending to small and private firms. Expect a busy currency market on Tuesday Morning…

Pound Sterling is the week’s best performing currency, enjoying gains of three-quarters of a percent against the Euro and one percent against the U.S. Dollar. Ahead of the weekend, currency traders will be digesting the results of local elections which suggest the Conservative Party have avoided a bloodbath.

GBP is the week’s best performing currency with a poor performance by Labour and the Conservatives in local elections likely to spur the two sides towards agreeing a Brexit deal.

The Pound’s advance accelerated late on Friday afternoon following comments from Labour leader Jeremy Corbyn that a deal on leaving the EU must be decided by the UK parliament soon.

The Pound-to-Euro exchange rate is quoted at 1.1751, 0.75% higher while the Pound-to-Dollar exchange rate is quoted at 1.3147, 0.80% higher.

The advance comes as the last of the local election results come through and the final tally suggests the UK’s two largest parties have little to smile about and everything to gain by putting Brexit behind them.

The overwhelming message coming in from both Labour and Conservative party sources, as well as political pundits, is that the electorate are deeply dissatisfied with the handling of Brexit by the two main parties.

At present the Conservatives appear to have lost 951 seats and lost control of 35 councils.

The Labour Party have meanwhile lost 9 councils and 110 seats, poor form for an opposition party that should be mopping up disaffected voters.

Using the vote tallies to project how a General Election might play out, it is estimated that Labour and the Conservatives would each command 28% of the national vote were the patterns repeated in a General Election.

“This is the second time Labour and Conservatives have been below 30%. This is a rejection of both the two largest parties,” says Sir John Curtice, the well-regarded polling expert, responding to the poll projections.

May has set next week as a deadline for the two sides to strike a deal.

The British pound weakened slightly on Thursday after the Bank of England lifted its growth forecasts but warned Brexit continued to cloud the outlook for monetary policy.

The BoE upgraded its forecast for growth in the world’s fifth-largest economy to 1.5 percent, up from the decade-low 1.2 percent it predicted in February.

Policymakers voted unanimously to keep interest rates steady at 0.75 percent as expected, but stuck to their view tighter policy would be needed in future.

Movement in GBP were small as this was expected, with investors saying that recent signs of a possible breakthrough in Brexit talks remained the main driver for the currency.

After the BoE decision, the pound initially broke higher before dropping to a day’s low of 1.3023 against USD, down 0.1 percent on the day. It also weakened to the day’s low against the euro, softening 0.2 percent to 1.1630 pence.

Sterling has traded in a narrow range of $1.28-$1.30 since Britain last month pushed its scheduled departure from the European Union back from March until Oct. 31.

But the currency hit a two-week high on Tuesday and has been nearing $1.31, helped by comments from Prime Minister Theresa May suggesting a rapprochement in talks with the main opposition Labour Party.

The delay of Brexit removed the immediate risk of a disruptive, no-deal British departure which hung over the BoE at its last meeting in March, but extends a period of economic uncertainty.

With Japan out for a week of holidays, traders are worried that the absence of Tokyo, one of the world’s top five currency trading centres, might fuel some exaggerated moves in foreign exchange markets.

Chestertons said it has enjoyed its strongest start to any year since the previous peak of the market in 2014 in terms of revenue and profitability.

Meanwhile Winkworth said that following events at the end of March delaying a Brexit decision, it had received a huge surge in interest from buyers. It said 26,8% more applicants had registered since March 26 – but there had been only a 1% rise in new instructions.

Chestertons’ first-quarter performance backs up its managing director Guy Gittins’ claims that the market in London is close to bottoming out.

In the first three months of 2019, Chestertons’ lettings division increased its revenue by 17% compared to the same period in 2018.

Its sales division reported a modest increase of 3%, although the number of new properties coming to the market dropped 21%.

Compared to the first three months of last year, Chestertons’ sales department registered 36% more buyers, conducted 13% more viewings and achieved 12% more exchanges.

In lettings, there have been 23% more tenants registered and 17% more offers made, both of which have resulted in 5% more new tenancies agreed.

Gittins said: “For a while now, there has been a misconception that the London property market has ground to a halt due to Brexit paranoia.

“While it is true that sales volumes have fallen since their peak, we have seen a sharp increase in buyer numbers and buyer activity, which started at the end of last year.

“With Brexit seemingly still some time away, the pent-up demand from these buyers has started to be released and turn into sales activity.

“We have seen a similar mindset in tenants who have noticed the sharp drop in the number of available properties coming on to the rental market and are acting quickly and decisively to secure a property.”

He added: “Our focus on utilising new technology to improve internal processes and making our back office functions more efficient has started to really pay dividends and we are now actively looking for suitable acquisitions, especially lettings businesses.”

Property Industry Eye Contributed to this article

GBP rose above $1.30, hitting a two-week high, on Tuesday after media reports that the tone of Brexit talks between the British government and the main opposition party had improved.

Prime Minister Theresa May is seeking a consensus with Labour to get a Brexit deal approved and wants talks to reach a conclusion by the middle of next week, several British journalists reported on Tuesday.

The pound rose to as high as $1.3049, with broad dollar weakness and end-of month portfolio changes by asset managers cited as possible reasons for the move alongside the Brexit-related optimism.

The British currency had fallen to a two-and-a-half-month low last week as the dollar surged and worries mounted about a deadlock in talks over the terms of Britain’s exit from the European Union.

But the Times newspaper reported on Tuesday that May’s government has made substantive moves in Brexit talks with Labour, citing unidentified Labour sources.

The EU hopes Britain’s two biggest political parties will reach agreement on Brexit this week, possibly including membership in a customs union, the EU’s chief Brexit negotiator said.

May agreed a withdrawal deal with the EU last year, but it was rejected three times by a deeply divided British parliament. That delayed the exit date, a postponement that has weighed on the pound as investors fret about prolonged political uncertainty.

The pound was on track for its biggest daily gain in over a month versus the dollar, rising 0.8 percent to $1.3047 and 0.6 percent to 1.1640 pence against the euro.

Sterling traded as low as $1.2851 last week as the dollar surged towards two-year highs, measured against a basket of currencies.

“May is still under pressure to pass her deal; however, we don’t see a breakthrough anytime soon,” Nordea analysts said in a note.

Sterling rose to a three-day high against the dollar on Monday but was little changed against other major currencies before a central bank policy meeting this week.

Markets do not expect the Bank of England to raise interest rates until early 2020.

Against the dollar GBP gained as much as 0.7 percent to $1.2945 but was steady against the euro and the Japanese yen.

With Japan out for a week of holidays, traders are worried the absence of Tokyo, one of the world’s top five currency trading centres, might fuel some exaggerated moves in foreign exchange markets.

This week we will see a Federal Reserve rate decision, a U.S. jobs report and another round of U.S.-China trade talks on tap.

It is widely expected that The Fed is expected to keep interest rates on hold at the outcome of its two-day meeting on Wednesday. At its March meeting the Fed indicated that it will hold off from hiking rates for the rest of the year amid expectations for a slower pace of economic growth.

The meeting is coming after Friday’s data showing that growth the U.S. economy unexpectedly accelerated in the first quarter. However, the expansion was boosted by gains in trade and inventories, which may unwind.

Friday’s non-farm payrolls report for April tops the list of data releases this week with economists expecting a gain of 181,00 jobs, while the unemployment rate is forecast to hold steady at 3.8%

Elsewhere, the Bank of England also looks likely to leave monetary policy unchanged after its meeting on Thursday, as Brexit drags on.

Other economic data on the docket the week include U.S. personal income and spending figures on Monday, as well as ISM manufacturing and non-manufacturing PMIs and a look at consumer confidence.

A new round of China-U.S. trade talks is due get under way in Beijing on Wednesday, with investors still awaiting some sign that the world’s two largest economies are getting close to a deal to end their almost 10-month long trade war..

Recent U.S. data has been supportive of USD and reinforced the belief that the United States is on a firmer economic footing than other leading economies.

“There were plenty of positive headlines for the U.S. economy this week, with GDP growth accelerating in the first quarter, durable goods orders surging in March, and the S&P 500 hitting a record high,” Michael Pearce, senior U.S. economist at Capital Economics, said in a note.

“But signs of underlying weakness abound which, together with the renewed softness of core inflation, will keep the Fed sounding extremely dovish,” said Pearce.

The Euro, which is hovering near its weakest level against the dollar since May 2017 amid worries about the strength of the euro zone economy, was up 0.22% at $1.1153.

GBP was up 0.14% on Friday, ended the week down 0.57%, amid growing concern about stagnant Brexit talks.

The week ahead:

Monday, April 29EU consumer inflation expectations US core price index (March)US personal income and spending (March)

Tuesday, April 30 China manufacturing and non-manufacturing PMIs (April)Euro zone prelim GDP (Q1)Canada GDP (Q1)Chicago PMI (April)CB consumer confidence (April)Pending home sales (March)

Wednesday, May 1 UK manufacturing PMI (April)ADP non-farm payrolls (April)ISM manufacturing (April)Federal Reserve rate decision and press conference

Thursday, May 2 China Caixin manufacturing PMI (April)UK construction PMI (April)Bank of England rate decision, Initial jobless claims, Factory orders (March)

Friday, May 3 UK services PMI (April)Euro zone CPI flash estimate (April)U.S. Non-farm Payrolls (April) ISM non-manufacturing PMI (April)

Reuters contributed to this report

British banks last month approved the greatest number of mortgages since June 2018, a tentative sign that the worst of the housing market’s slowdown ahead of Brexit may have passed, data showed on Friday.

Seasonally-adjusted data from the UK Finance industry body showed banks approved 39,980 mortgages in March, up 6 percent on a year ago and compared with 39,207 in February.

The survey added to some early signs that the housing market may be picking up a little after slowing markedly last year.

Earlier this month the Royal Institution of Chartered Surveyors’s gauge of house prices picked up for the first time since July, although it said the uncertainty around Brexit was likely to keep weighing on the market.

The United Kingdom was due to have left the EU on March 29, though Prime Minister Theresa May has been unable to get her divorce deal approved by parliament. Now the new deadline is Oct. 31, more than three years since the 2016 referendum.

UK Finance said lending to consumers expanded by 4.1 percent in March, the strongest growth rate since June and up from 3.5 percent in February.

Reuters News Contributed to this update..

http://thefinergroup.comfiner-wealth/mortgages/

GBP slid to a two-month low on Tuesday as hopes for a breakthrough in Brexit talks between the ruling and opposition parties faded and British Prime Minister Theresa May faced growing pressure to quit.

Britain’s parliament returned from an Easter recess on Tuesday as the government continued its talks with the opposition Labour party about forging a Brexit agreement that can win the support of lawmakers.

But such talks have made little headway, analysts said, and weekend media reports said the pressure on May to find a solution or name a date for her to step down was growing.

A report in the Financial Times on Tuesday also said that May planned a new vote on her Brexit agreement – which has been defeated three times already – next week in a high-risk push to break the deadlock.

After earlier trading as high as $1.3019 in mid-European trading, the pound dropped to as low as $1.2928, down 0.3 percent on the day and its weakest since February 19. GBP/EUR now trading sun 1.1600 on morning lows of 1.1524.

Data showing stronger than expected retail sales in March and a slight slowdown in inflation failed to move sterling much last week, as Brexit continues to dominate trading.

This week all eyes will be looking ahead to Friday’s data on U.S. first quarter growth, which is expected to show that the economy is stabilising after a recent soft patch.

Data last week pointing to an unexpected narrowing of the U.S. trade deficit in February and a rebound in retail sales in March have bolstered expectations that the economy is regaining momentum after a weak start to the year.

The week will also bring reports on U.S. housing data, durable goods and consumer sentiment.

Away from the U.S., markets will be looking ahead to central bank meetings in Japan and Canada for fresh insights from policymakers on the global economic outlook.

Geopolitical events will also remain in focus ahead of a summit meeting between President Donald Trump and Japanese Prime Minister Shinzo Abe in the White House on Friday. They are to hold talks on U.S.-Japan trade and efforts to contain North Korea’s nuclear program.

The U.S. dollar was higher against a basket of the other major currencies in holiday-thinned trade Friday, with many financial markets closed for the Good Friday holiday.

Demand for USD has continued to be underpinned after data on Thursday showing that U.S. retail sales grew at their strongest pace in one-and-a-half years in March.

The euro was slightly higher against the dollar late Friday, with EUR/USD ticking up 0.15% to 1.1245, after falling to a one-and-a-half week low in the previous session, pressured by weak euro zone PMI data.

The dollar was little changed against JPY and GBP in late trade.

This weeks has list of significant events likely to affect the markets.

Monday, April 22

U.S. Existing home sales (MoM) (Mar)

Tuesday, April 23

U.S. House Price Index (MoM) (Feb)U.S. Services PMI (Apr)U.S. New Home Sales (MoM) (Mar)U.S. Richmond Manufacturing Index (Apr)Eurozone Consumer Confidence (Apr)

Wednesday, April 24

German Ifo business climate indexBoC interest rate decision

Thursday, April 25

BoJ Monetary Policy Statement U.S. Durable Goods Orders (MoM) (Mar)U.S. Initial Jobless Claims

Friday, April 26

U.S. GDP (QoQ) (Q1)U.S. Real Consumer Spending (Q1)U.S. Michigan Consumer Sentiment (Apr)

GBP struggled to make much headway on Wednesday after data showed British prices rose slightly slower than expected in March, easing the pressure on the Bank of England to tighten monetary policy.

Annual consumer price inflation came in at 1.9 percent in March, below forecasts for a 2 percent rise and below the BoE’s target of 2 percent.

Data on Tuesday showed that British workers’ pay is rising and outstripping inflation, and combined with the lowest unemployment rate in 44 years, has taken the edge off the uncertainty about Brexit.

The pound dipped slightly from around $1.3055 to $1.3040 after the inflation numbers were published. Against the euro, sterling extended its losses and hit the day’s low of 1.1519, down 0.3 percent.

Economic data has failed to move the pound significantly in recent months as Brexit negotiations dominate the news agenda.

The BoE has signalled that it will lift interest rates to stop inflationary pressures from building, but it is highly unlikely to act until the Brexit process is resolved.

Tuesday offered a reminder of the sensitivity to Brexit-related news.

A reminder on Tuesday of GBP’s current sensitivity was demonstrated following a report in the Guardian newspaper that talks between the Labour opposition party and the ruling Conservative had stalled sent the pound tumbling. A spokesman for the Labour party denied that the talks had hit an impasse.

The British pound rose back towards $1.31 on Monday, although trading was quiet in the absence of any significant Brexit-related developments as the Conservative and opposition Labour parties continue their talks.

European Union leaders and the British government last week announced Brexit would be delayed for up to six months.

That removed the immediate risk of a no-deal Brexit but also raised the possibility of months of political uncertainty in Britain as politicians struggle to agree over how best – or whether at all – to leave the EU.

Britain’s Foreign Secretary Jeremy Hunt said on Monday that talks between the government and the opposition Labour Party to find consensus over a Brexit plan are more constructive than people think.

Goldman Sachs analysts said they believed there was still more upside than downside for the pound so long as the market focused on Brexit negotiations rather than macroeconomic news.

“Another extension to the Article 50 deadline lowers the probability of a quick resolution to the Brexit impasse, but we think the market seems to be taking this too far,” they wrote in a note sent to clients.

“While slow, we see signs of progress in the negotiations, so there remains a meaningful chance that there is some resolution before the May 22 deadline.”

Sterling rose 0.2 percent to $1.3106 by 0840 GMT. Against the euro the pound was little changed at 1.1580 pence per euro.

A Busy week ahead with U.S economic releases, with updates due on the housing market, retail sales, industrial production and trade which will give investors fresh insights into the health of the broader economy.

A number of Fed speakers are also on the docket, including Chicago Fed President Charles Evans and St. Louis Fed President James Bullard.

China is to release what will be closely watched economic data, including a look at first quarter growth on Wednesday, after a flurry of soft data from the world’s second largest economy spooked investors earlier this year.

It will also be a holiday shortened week, with most major financial markets closed on Friday for the start of the Easter holidays.

USD slid to its lowest level in two weeks against the Euro on Friday as risk appetite was boosted by signs of economic stabilisation in China and a strong start to U.S. corporate earnings season.

Chinese data showed exports rebounded last month, helping offset weaker imports, and reports of another reduction in Germany’s growth forecasts, analysts said.

Data from Europe was encouraging, with euro zone industrial output declining by less than expected in February.

“It’s a party-like atmosphere for markets. Good news from China and U.S. earnings off to an auspicious start,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

“This has safe-havens on their back foot, that’s why the dollar is under performing,” he said.

Against the Japanese yen, which tends to benefit during geopolitical or financial stress as Japan is the world’s biggest creditor nation, the USD rose 0.34%.

AUD , which is sensitive to shifts in risk sentiment, was up 0.69%.

The British pound pushed higher against the greenback as traders were encouraged by the immediate risks around Brexit being pushed back by this week’s delay to the exit date. GBP was up 0.19% at $1.3077.

The pound was weaker against the firmer Euro, with the single currency up 0.23% to 1.1584 in late trade.

ING analysts said they expect sterling to fall over the next few months, in part because a Conservative party leadership battle could result in a hard line euro sceptic prime minister, and also because the six-month Brexit delay was too short for the Bank of England to tighten monetary policy.

The “partial clean-up of the GBP short positioning (and some built-up of new speculative longs) since the beginning of the year can also add to the reversal as GBP positioning is no longer meaningfully skewed one way,” the analysts wrote.

The Dutch bank predicts sterling will test levels of 1.1363 per euro and $1.27.

A list of significant events likely to affect the markets.

Monday, April 15

The Bank of Canada is to publish its business outlook survey.

Fed Bank of Chicago President Charles Evans and Boston Fed President Eric Rosengren are on the docket to speak.

Tuesday, April 16

The Reserve Bank of Australia is to publish the minutes of its latest policy meeting.

The U.K. is to release its employment report.

The ZEW Institute is to publish a report on German economic sentiment.

Canada is to release data on manufacturing sales.

The U.S. is to report on industrial production.

Dallas Fed President Robert Kaplan is to speak.

Wednesday, April 17

New Zealand is to publish inflation data.

China is to release figures on first quarter growth along with data on fixed asset investment and industrial production.

The U.K. is to report on inflation.

Canada is to produce data on trade and inflation.

Bank of England Governor Mark Carney is to speak at an event in Paris.

The Fed is to publish its Beige Book.

Philly Fed President Patrick Harker and St. Louis Fed head James Bullard are to speak.

Thursday, April 18

Australia is to publish its jobs report.

The euro zone is to release data on private sector activity.

The U.K. is to release data on retail sales.

Canada and the U.S. are both to publish figures on retail sales and the U.S. is also to release the Philly Fed manufacturing index and the weekly report on jobless claims.

Atlanta Fed President Raphael Bostic is to speak.

Friday, April 19

Financial markets in Hong Kong, Europe and the U.S. will be closed for the start of the Easter holidays.

The U.S. is to publish data on building permits and housing starts.

European Union leaders gave Britain six more months to leave the bloc, more than Prime Minister Theresa May says she needs but less than many in the bloc wanted, thanks to fierce resistance from France.

The summit deal in Brussels in the early hours of Thursday meant Britain will not crash out on Friday without a treaty to smooth its passage. But it offers little clarity on when, how or even if Brexit will happen, as May struggles to build support in parliament for withdrawal terms agreed with the EU last year.

With German Chancellor Angela Merkel insisting that Britain would not be forced out and that a chaotic no-deal departure must be avoided if at all possible, there was never any real doubt that May would get an extension.

French President Emmanuel Macron, reprising a role he took last month when May got a first, two-week delay, pushed leaders into hours of debate over dinner as he fought a largely solo campaign to persuade them not to give the British up to another year.

Summit chair Donald Tusk and others argued that obliging May to accept a much longer deadline than the June 30 date she had sought could help swing pro-Brexit hardliners within her own Conservative party behind her deal, fearing a long delay could see the British public turning against a withdrawal altogether.

But Macron, while irritating some peers who saw his stance as Gallic grandstanding, insisted that letting Britain stay in the Union any longer risked undermining the project of European integration that is one of his main policy goals.

The result was a compromise on the date, with a deadline of Oct. 31, for Britain to leave, deal or no deal — on condition that May holds an election on May 23 to return British members to a new European Parliament that convenes in July, and that it pledge not to disrupt key EU decision-making before it leaves.

If May fails to win over lawmakers on the treaty or fails to hold an election, Britain will leave with no deal on June 1.

Merkel, who eased tension at the start of the talks by sharing a joke with May over photographs of them both wearing very similar jackets, stressed a need for calm and order: “We want an orderly exit by Britain,” she said. “And an orderly exit by Britain can be best ensured if we give it some time.”

Tusk, a former Polish premier who has long tried to keep a door open for Britons to change their minds and stay, said the delay until Halloween gave time for London to ratify May’s deal, tweak elements of the future EU-UK relationship to Labour’s liking — or give it a chance to “cancel Brexit altogether”.

Sterling trimmed early gains on Tuesday after a German government spokesman denied a media report that Chancellor Angela Merkel was willing to put a time limit on the Northern Ireland backstop in Britain’s EU withdrawal agreement.

GBP had briefly jumped to the day’s high after the BBC reported that a British eurosceptic lawmaker had been advised that Merkel was willing to put a five-year time limit on the backstop. It had climbed as much as nearly half a percent to $1.3122 after the report, compared with $1.3076 earlier. It had also strengthened a third of a percent against the euro to 1.1627 pence.

A German government spokesman, however, dismissed the media report as “without any foundation” and the pound gave up gains to stand just 0.2 percent higher at $1.3079 by 10:30 GMT. GBPUSD currently sitting at 1.3040 and GBPEUR trading at 1.1556 at 17:01 GMT.

Disagreement between London and the European Union over the “Irish backstop” is blocking a Brexit deal from getting through Britain’s parliament.

With barely days remaining for Britain to negotiate a second delay to its departure from the EU beyond the current date of April 12, GBP traders are braced for either a lengthy delay or the prospect of crashing out of the European Union without a deal in place.

While British lawmakers have made it clear that a hard Brexit is not acceptable, there is still no clarity on what would be the nature of the deal between London and Brussels.

.While British Prime Minister Theresa May was due to travel to Berlin and Paris on Tuesday ahead of Wednesday’s EU summit in Brussels, British lawmakers will hold a 90-minute debate on her proposal to delay Britain’s EU departure date to June 30 from April 12.

On the eve of an EU summit of national leaders due to decide on whether to grant Britain another Brexit delay, the euro zone’s chief negotiator Michel Barnier said the length of any second postponement beyond the current date would depend on the rationale presented by May.

Sterling will rally 3 percent if the Brexit gridlock is resolved and Britain looks likely to leave the European Union with a deal but the currency will tumble 5 percent if negotiations fail, a Reuters poll found.

The pound tanked after the June 2016 referendum result — as predicted by Reuters polls beforehand — and was trading at around $1.31 on Thursday, far weaker than it was ahead of the vote.

Since the decision to leave, the pound has gyrated wildly on any Brexit news and largely shrugged off economic data, including recent private surveys which suggested Britain’s economy is likely to shrink in coming months.

On Tuesday, British Prime Minister Theresa May said she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour Party leader, a last-ditch gambit to break an impasse over Britain’s departure.

Nearly three years since the United Kingdom voted to leave the EU in a shock referendum result, it is still unclear how, when or even if it will ever quit the European club it joined in 1973.

May secured a Withdrawal Agreement with the EU in November but has failed to get the support of British lawmakers, leaving the country’s road out of the EU unclear.

If that road is smooth and Britain leaves with a deal, sterling will gain around 3 percent, the April 1-4 poll predicted. If the road is blocked and no deal is made, the pound will fall 5 percent.

The wider poll of nearly 70 foreign exchange strategists said the pound would be trading at $1.32 in a month, $1.35 in six months and have strengthened to $1.38 in a year, indicating respondents do not expect a disorderly Brexit.

But highlighting the uncertainty, the 12-month forecast range was wide, going from $1.27 to $1.56.

A Reuters poll of economists last month found the vast majority of them saying the two sides would settle eventually on a free-trade deal, as they have in all Reuters polls since late 2016.

That poll also predicted the Bank of England would raise borrowing costs towards the end of this year and then again in the latter half of 2020.

In contrast, the European Central Bank will not be raising interest rates until at least July next year, another Reuters poll predicted, but that differential won’t give the pound any support against the common currency.

Across all four touch points in the forecast horizon — one, three, six and 12 months — GBPEURwas predicted to be worth 1.1764. It was valued at around 1.1723 on Thursday.

Reuters News Reports..