British Pound Sharply Lower Amid Brexit Uncertainty

Market Reviews

Strong risk appetite dominates the global financial markets today. Japanese yen remains weak. The US dollar is trading mixed. Australian dollar and Canadian dollar are trading as the strongest ones. The CAD boosted by rise in oil prices.

The British pound fell sharply, losing all previously won positions, due to the uncertainty around Brexit and the strong concern that the House of Commons will vote against the current draft Brexit agreement on December 11. Sterling is trading as the weakest one.

Stock markets in Europe and Asia demonstrate sharp gains and US stock futures point to sharply higher open. FTSE added 1.69%, DAX gained 2.21% and CAC increased 1.00%. Earlier in Asia, Nikkei closed up 1.00% at 22574.76. China Shanghai SSE added 2.57% to 2654.8. Hong Kong HSI increased 2.55% to 27182.04. Singapore Strait Times rose 2.34% to 3190.62.

Today’s data showed, that Eurozone PMI manufacturing fell to 51.8 in November from October’s 52.0. It’s also the lowest since August 2016. German PMI manufacturing dropped to 51.8, a 31-month low. Italy PMI manufacturing stayed in contraction and dropped to 48.6, a 47-month low. France PMI manufacturing dropped to 50.8, a 26-month low. Spain PMI manufacturing dropped to 3-month low at 52.6. Meanwhile, UK PMI manufacturing rose to 53.1 in November, up from 51.1 and beat expectation of 52.0.