There were no data releases from the UK today. Brexit means Brexit, Theresa May says, but a London court this week will decide whether it’s up to her to decide when the U.K. leaves the European Union. The prime minister’s most senior legal adviser, Attorney General Jeremy Wright, will attempt to convince a judge that May can trigger Article 50 of the Lisbon Treaty, which starts an exit, without approval from her fellow lawmakers. Failure would force the issue into the House of Commons and the House of Lords, both of which were largely pro-EU. The lawsuit, which has hearings scheduled for Oct. 13 and 17, could delay the exit for a year, or lead to its derailment altogether.
On the other hand BoE's member Saunders said that he would hesitate long and hard before giving BOE any say on fiscal policy. Saunders is the newest MPC recruit and joined days after the new round of stimulus was announced. He voted in September to keep all elements of the package unchanged. In his speech, he said that that while the bank has limited room to cut bank rate further, "substantial scope remains for stimulus through asset purchases."
Sterling is currently being traded around around 1.2330 level. Pair is likely to find support around 1.2250 handle and resistance above 1.2370 area.
