Pound Drops, Aussie Rises

Market Reviews

The Pound has declined as yesterday’s meeting between Theresa May and Jean Claude Juncker turned out to be a disaster. Brexit offers weren’t settled. Theresa May promised to deal with it before the end of this week and prime minister is sure that negotiations will see the progress. The greenback has mildly weakened. DOW hit the maximum of 24534.04, but closed lower at 24290.05. S&P 500 reached the maximum of 2665.19, but ended at 2639.44. Nikkei dropped -0.15%.

Reserve Bank of Australia didn’t shift the rate from 1.50%, as expected. GDP growth is projected to be somewhere at 3% throughout next couple of years. Employment growth is expected to remain sustained. Wage growth is likely to stay low. Inflation is still weak but it’s projected to improve. Current account deficit reduced to -9.1 billion Australian dollars in the third quarter. Australian retail sales rose 0.5% mom in October. Aussie is boosted by this data.

China Caixin PMI services increased from 51.2 to 51.9 last month. British BRC sales monitor lifted 0.6% yoy. Eurozone will publish revision of a Q3 Gross Domestic Product, retail sales and services PMI revision. Britain will show PMI services. Canada will present trade balance. US will announce trade balance and ISM non-manufacturing.