Brexit as the Markets' Main Driving Force for the Coming Week
UK Prime Minister Theresa May continues to fight for her Brexit plan after the resignation of key ministers, who questioned the UK exit from the EU. Meanwhile, Theresa May is expected to appoint another Brexit minister, rather than getting rid of the department. But at the same time, it’s also reported that May will face a no-confidence vote as soon as next Tuesday as Conservatives gather 48 written requests.
Brexit will remain in the focus of the markets next week. On Thursday, the British pound tumbled 2% against the US dollar and euro and showed its biggest daily drop against the common currency in over two years, as the series of resignations threatened to tear May's government apart. Still, it had recovered a small part of those losses today.
Also next week, the Eurozone and United States will release purchasing manager surveys. Eurozone IHS Markit's composite Purchasing Managers' Survey, due on Friday, is expected to show that growth remained robust.