Brexit Uncertainty Caused Decrease of the Pound

Market Reviews

The British pound remains the weakest major currency today, as traders are waiting for progress in Brexit negotiations. The US dollar remains robust against the euro, the British pound and the Japanese yen. The Australian dollar rose today due to higher than expected retail sales data, which rose by 0.5% mom, compared with the forecast of 0.3% mom.

The meeting of British Prime Minister Theresa May with European Commission President Jean-Claude Juncker did not come to an end successfully. Politicians could not reach agreement on the issue of the border with Ireland. Representatives of the European Commission said that there are still some topics that will need further consultations and negotiations, especially in London.

UK PMI services fell to 53.8 in November from 55.6 in October. Economists had expected the index to drop to 55.0. Despite the decline, the index remains above the value of 50, indicating a continuing expansion in the services sector.