- USD awaits North Korea deal
- Aussie and Kiwi Dollars weaker on overnight data
The Australian Dollar is a little bit cheaper this morning after much worse than expected construction completions data. The markets
had expected a rebound to 0.6% growth but the actual data showed minus 3.1% and that’s even worse than the contraction in quarter three. A widening of New Zealand’s trade deficit also weakened the Kiwi Dollar overnight. It would seem clear that the slowdown in China is hampering exports from Australasia but imported goods remain strong. This was the widest deficit since June 2006 and a worrying sign for the Reserve Bank of New Zealand, which may have to pursue an expansionist monetary policy at a time when it would have preferred to be raising interest rates.
Pound pushes a little higher
The number of UK mortgages being approved rose to the highest level since January 2017 and consumer credit also rose last month. That gave the Pound a boost and Sterling had another boost overnight as the British Retail Consortium saw shop prices rise 0.7%, more than expected. I should add the caveat (in spite of Brexit) because it is BBC-esque so to do. There isn’t a lot of data for the UK today but oh my word, there’s a lot of politics to contend with. It is likely Mrs May’s concession of a delay to Brexit
will be the outcome but where is the room for an agreement between all the vested interests? No really where is it? Sterling is riding high
and has broken a number of resistance levels on the GBPEUR exchange rate and is pressing upwards at the top of its range against the USD. If a Brexit deal
can be done, hang on for a stellar push higher.
You may also find interesting
Canadian Dollar could get a boost
This afternoon brings Canadian inflation data which could well boost the Canadian Dollar
, along with all the US data
that is expected.
USD down on housing data – markets will be volatile today
Very poor US housing data knocked the US Dollar yesterday. GBPUSD gained a cent and EURUSD was up slightly less.
Later today, we will have a slew of US data
, including housing data, factory orders and crude oil inventories. All are potentially market moving, so be aware of that. We may also see a deal done between the US and North Korea, as the US president visits the previously pariah state.
Have a fab day and don’t let the Brexit bugs bite!