British Pound Higher Despite Brexit Uncertainty
The British pound is paring back Brexit triggered losses. Japanese yen is also strengthening. The two currencies are the strongest ones. The pound rallied today, despite concerns over Brexit and the resignation of key officials in Prime Minister Theresa May’s government. Meanwhile, commodity currencies are trading lower.
The euro rose slightly today. As it was reported, inflation in the Eurozone rose in October at the fastest pace in the last six years, due to energy prices. Eurostat reported that consumer prices in the Eurozone grew 2.2% year-on-year in October, after rising 2.1% in September. It was the biggest increase since December 2012. On the month, headline inflation increased by 0.2% last month, in line with market expectations, but slowing from 0.5% growth in September. Meanwhile, core inflation, which excludes energy, food, tobacco and alcohol, was confirmed at 1.1% on the year in October.
On stock markets, FTSE lost 0.62%, DAX fell 0.39% and CAC dropped 0.55%. Earlier in Asia, Nikkei fell 0.57%. Hong Kong HSI added 0.31%, Shanghai SSE gained 0.41%, Singapore Strait Times increased 0.95%.
UK Prime Minister Theresa May continues to fight for her Brexit plan after the resignation of key ministers, who questioned the UK exit from the EU. Meanwhile, Theresa May is expected to appoint another Brexit minister, rather than getting rid of the department. But at the same time, it’s also reported that May will face a no-confidence vote as soon as next Tuesday as Conservatives gather 48 written requests.
Cecilia Malmstrom (European Trade Commissioner) urged China to cooperate on WTO reform. Speaking at a conference in Paris on "A WTO for the 21st Century" she said, that China must make concessions in negotiating reform of the World Trade Organization or risk seeing the United States turning its back on the current system. She also noted, that the problems between the US and China could not be resolved within the WTO, but required political momentum by the G7 and G20 groups of countries.