- Australian Dollar feeling the pressure
- Bank of England inflation report the main focus
By Halo Financial Team
Theresa May remains under pressure as the Democratic Unionist Party (DUP) delivers warning shots after accusing the Prime Minister of breaking fundamental promises of Brexit. The DUP, whose 10 votes May relies on for the majority in parliament, all withheld their support in votes on Budget measures. With just 129 days left to Brexit, Mrs May insist her draft EU withdrawal deal is the right one.
The party's decision to abstain on a series of amendments to the Finance Bill on Monday night - as well as support an amendment proposed by Labour - was seen as a gesture, rather than an attempt to influence policy.
Australian Dollar feeling the pressure
Australian Dollar is under broad based selling pressure today. The Reserve Bank of Australia (RBA) minutes reiterated the non-urgency for any rate move. RBA policymakers did reiterate they did not see a strong case for a near-term move as high household debts and wage growth still remain staggering. Simply put, risk aversion is more likely the factor driving the Aussie down leaving the Aussie Dollar at the mercy of the markets today.
Major Asian indices are in deep red following the weakness in the US overnight, as tech selloff intensified. Euro and Dollar are following as the next weakest so far. Swiss Franc is the strongest one for today, extending yesterday’s surprising rally.
Bank of England inflation report the main focus
Bank of England Governor Mark Carney’s inflation report hearing will be a main focus for today. The report is likely to reveal quarter four slowdown in economic growth after a strong third quarter. Although, the BoE agreement broad outlook for interest rates is heavily conditioned on Brexit assumptions.