British Pound Pressured Again by Brexit News

Market Reviews

Canadian dollar gets not support from stronger than expected retail sales data and is trading mixed. US dollar and Japanese yen are strengthening slightly. The British pound is the weakest one after Prime Minister Theresa May’s Chequers Brexit proposals were rejected by the EU leaders. Swiss franc is trading as the strongest major currency.

European Council President Donald Tusk rejected Theresa May's blueprint for Brexit, saying it risked the integrity of the EU single market and the Northern Ireland border. Theresa May is expected to make a statement today to defend her Chequers Brexit plan, which is disliked by EU as well as Brexiteers.

Canada’s headline retail sales rose 0.3% mom in July, matched expectation. Ex-auto sales rose 0.9% mom, above expectation of 0.6% mom. Headline CPI slowed from 3.0% yoy to 2.8% yoy in August as expected. Core CPI common rose from 1.9% to 2.0%. Core CPI Media rose from 2.0% to 2.1%. Core CPI trim rose from 2.1% to 2.2%.

Eurozone PMI manufacturing fell to 53.3 in September (the lowest reading in 28 months), down from 54.4 and missed expectation of 54.5. PMI services rose to 54.7, up from 54.5 and beat expectation of 54.5. PMI composite dropped to 54.2, down from 54.5.

Germany PMI manufacturing fell to 53.7 in September, down from 55.9 and missed expectation of 55.8. The indicator hit the lowest in 25 months. German PMI services rose to 56.5, up from 55.0 and beat expectation of 55.1. PMI composite dropped to 55.3, down from 55.6 and hit 2-month low.