(30 October 2019 ) DAILY MARKET BRIEF 2:GBP set to close the month in style

The approval by EU leaders of a longer three-month extension until 31 January 2020 finally provided British MPs with good reasons to support early parliamentary elections on 12 December, although Prime Minister Johnson had to find a way around the two-thirds Fixed-term Parliaments Act in order to get support for the bill after a third failure on Monday. Despite being largely overshadowed by Brexit, the race for December elections is expected to stay turbulent, with differing goals among main political forces. Yet even if PM Johnson’s Conservative party were to win the support of voters and eventually ratify the Withdrawal Agreement, a post transition period deadline should remain, as a definitive EU – UK relationship will then have to be negotiated. Sterling optimism should stay high in the coming days as it currently trades at 5-month high.