British Pound Stays Unstable Versus Major Currencies

The British pound remains volatile because of news about Brexit. The British pound fell sharply yesterday after news that the fifth round of negotiations on Brexit did not end with success. However, the pound recovered slightly after reporting that the UK could receive a two-year extension of the Brexit process.

It is reported, that ECB policymakers are considering the possibility of reducing the monthly target for the purchase of assets, at least half, starting next year. That is, the current EUR 60b per month pace could be lowered to EUR 30b per month.

China's trade surplus unexpectedly fell to a six-month minimum of US$28.5B in September. The market expected a softer drop to $39.5B. The growth in exports increased to 8.1% yoy in September from 5.5% in August, while import growth accelerated significantly to +18.7% from +13.3%.