British Pound Ignores Weak Services PMI and Brexit Rumors

Market Reviews

The US dollar is trading mixed in anticipation of tomorrow’s midterm elections in the US. The Swiss franc is trading as the weakest one. The euro is also weak after investor confidence report. Eurozone Sentix Investor Confidence index dropped to 8.8 in November, down from 11.4 and missed expectation of 9.9.

The British pound ignores weak services PMI and Brexit news. The pound remains strong. EU chief Brexit Michel Barnier’s speech could probably give pound a decisive direction. UK PMI services dropped to 52.2 in October, down from 53.9 and missed expectation of 53.4.

According to Brexit, it’s reported that EU is insisting on having an Irish backstop without time limit. On the other hand, UK Brexit Minister Dominic Raab pushing for a three-months expiry on the backstop. Meanwhile, out of UK, there are rumors that there will no Brexit deal to be made this week. And more importantly, there are even reports saying that a no-deal Brexit would be most probable if no agreement would be made within a week.

On stock markets, major European indices rose, while shares in Asian fell. FTSE added 0.40%, DAX gained 0.12%, CAC rose 0.26%. Nikkei closed down 1.55%, Hong Kong HSI lost 2.08%, China Shanghai SSE dropped 0.41%. Singapore Strait Times fell 1.79%.

Chinese President Xi Jinping pledged to cut import taxes further and spend more on foreign goods and services. He also noted “economic globalization is facing setbacks, multilateralism and the free trade system is under attack, factors of instability and uncertainty are numerous, and risks and obstacles are increasing.”