British Pound Relatively Steady, May-Juncker Meeting in Focus

Market Reviews

On currency market, Canadian dollar is trading as the weakest for today, after Japanese yen and then US dollar. Nevertheless, for the week, Aussie and Loonie remain the worst performing. Swiss franc is the strongest one, followed by Japanese yen and US dollar. The British pound is trading mixed and UK PM Theresa May’s meeting with European Council Jean-Claude Juncker, and the EU’s report on Italy’s budget could trigger some volatility.

On stock markets, DOW lost 2.21% yesterday to close at 24465.64. S&P 500 closed down -1.82% and NASDAQ dropped 1.70%. In Asia, Nikkei closed down 0.35%. But other major Asian indices turned positive after initial selloff. Hong Kong HSI added 0.30%, China Shanghai SSE gained 0.19%, Singapore Strait Times rose 0.55%.

UK Prime Minister Theresa May will meet European Council Jean-Claude Juncker in Brussels today, to work on the political declaration covering future relationship after Brexit. According to European Commission spokesman Margaritis Schinas, the aim of the meeting between May and Juncker is for preparation for Sunday, November 25, EU summit, for approving the Brexit withdrawal agreement. The so-called political declaration on future relationship will also be covered.

Also today, the European Commission will publish its views on the draft budget plan of all 19 Eurozone states. And without a doubt, Italy’s DBP will be included. It’s also expected that the Commission will publish a report regarding Italy’s breach of EU rules. That will be the first step in the so called Excess Deficit Procedure, which could eventually lead to fines for Italy up to 0.2% of its GDP.

Today’s data showed, that Australia Westpac leading index rose 0.1% mom in October. Japan all industry activity index dropped by 0.9% mom.