Pound volatile as Westminster power struggle goes to the courts
Fiona Cincotta September 12, 2019 9:11 AM
Pound struggles after Boris Johnson's defeat in court.
It should be an exciting day in the markets today. Yesterday the Scottish Court of Session ruled the proroguing of Parliament was illegal, a decision that gave the pound a brief boost, sending it up past 1.234 to the USD. However this still has to go to the Supreme Court and the government will be hoping to see it thrown out.
The realization seems to be sinking in with the currency market this morning, with sterling now dropping back past 1.233 in early selling.
All eyes on today’s ECB meeting
Barring any further dramatic news from Westminster, the big news today will be the European Central Bank meeting where Mario Draghi is widely expected to announce a series of loosening measures. Current Eurozone inflation is well below the 2% level and with the Eurozone economy, including Germany, now seen to be struggling. The EUR is currently looking range bound ahead of the Draghi press conference.
Morrisons leads FTSE stocks on Amazon Prime announcement
WM Morrison is leading the FTSE this morning, up more than 3% on the back of its announcement of a multi-year partnership with Amazon Prime. The supermarket chain reported flat sales over the six months to the start of August. The FTSE is marginally up 0.25%.
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