British Pound Rose on Brexit Optimism
The British pound has strengthened thanks to the comments from European Parliament's chief Brexit negotiator Guy Verhofstadt that there is a 50/50 chance of making sufficient progress. British Prime Minister Theresa May intends to meet with EU key politicians in Brussels and try to convince them to move forward in negotiations on Brexit until the end of December. The US dollar rose after news that the Senate passed a tax reform bill.
The Purchasing Managers’ Index (PMI) in the UK construction sector rose to 53.1 in November from 50.8 in October. Any reading above 50 indicates an expansion in the sector.
Eurozone Sentix investor confidence declined in December, and was weaker than expected. The investor sentiment index fell more than expected, to 31.1 from 34.0 in November. It was expected, that the estimate would decrease to 32.3.
Producer price index (PPI) of the Eurozone fell more rapidly than expected in October. Producer prices increased by 2.5% compared to the same period last year, which was lower than the growth in the previous month by 2.8%.