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Sterling slides on no deal panic

Published: Thursday 23 August 2018

  • Australian Dollar dives on political woes
  • US Dollar fights back
  • Eurozone data in focus today
​​By Jonathan Russel
Sterling fell as the UK government starts the process of advising people, businesses, and other affected groups about how to plan for the possibility of leaving the EU without a deal. Ministers say publication of the first batch of documents will tackle what they call "hair-raising scare stories" about a no-deal Brexit. They say reaching a deal with the EU is the "overriding priority" but "we must be ready to consider the alternative".
Australian Dollar dives on political woes

The Australian Dollar fell as political turmoil in Australia takes the headlines from the US today.  However, Australia could have the seventh Prime Minister in a decade in a matter of weeks, or even days, after several senior ministers resigned, putting Australian Prime Minister Malcolm Turnbull's leadership in deep jeopardy. The Australian Dollar continues to fall, despite upbeat economic data, which would suggest that once again, we are seeing politics, rather than economics and yield differentials, driving currency.
US Dollar fights back

The US Dollar pulled back some of its recent losses as the minutes of the July-August Federal Open Market Committee (FOMC) revealed nothing that the markets didn’t already know. The Federal Reserve is going to raise the Federal Fund Rate again in September, by 25bps to 2.00-2.25%. The minutes noted that “...many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step in removing policy accommodation.”

Eurozone data in focus today

Eurozone events are the main focuses today, including Purchasing Managers’ Indices (PMIs) and the European Central Bank (ECB) accounts.

What else to watch today?

The UK will release the Confederation of British Industry (CBI) reported sales data. Later in the day, the US will release Jobless Claims, House Price Index, and their own PMIs. 

Why couldn't the bicycle stand up?
Because it was two tired.

As I suspected, someone has been adding soil to my garden.
The plot thickens.

What did the traffic light say to the car?
Don't look! I'm about to change. 

Today's Major Economic Releases

Market BST Data/Event Previous Expected
ALL Day One Jackson Hole Symposium    
EUR 09:00 EU: Flash Manufacturing Purchasing Managers' Index 55.1 55.1
EUR 09:00 EU: Flash Services Purchasing Managers' Index 54.2 54.4
EUR 12:30 European Central Bank Monetary Policy Meeting Accounts    
USD 13:30 US: Unemployment Claims 212k 215k
USD 14:45 US: Flash Manufacturing Purchasing Managers' Index 55.3 55.1
USD 14:45 US: Services Purchasing Managers' Index 56.0 55.9
EUR 15:00 EU: Consumer Confidence -1 -1
USD 15:00 US: New Home Sales 631k 643k
NZD 23:45 New Zealand: Trade Balance -113m -400m

For more information, infographics and the latest currency insights, visit www.halofinancial.com/news