- Sterling falls on disappointing retail sales data
- China reports a 6.8% Gross Domestic Product (GDP) growth
- Spain confirms implementation of Article 155 to suspend Catalonia's autonomy
By Ricky Nelson
Overnight in Australia it was reported that employment rose by 19,800 last month and that the unemployment level fell to 5.5%, down 5.6%, which is a five-year low. Strangely, the Australian Dollar failed to move on the news, but the bias is certainly set for a rally from here.
We had a raft of data released from Asia. Chinese Gross Domestic Product (GDP) grew 6.8% year-on-year in the third quarter and retail sales a healthy 10.3% year-on-year in September. These were mostly as expected and although this is good news for President Xi in the midst of the party congress, markets were unmoved.
Sterling fell yesterday despite positive UK data. Wage growth was reported at 2.1%; marginally higher than the 2% expected. Pay is still lagging behind inflation, though, and this will put even more pressure on the Bank of England not to raise interest rates next month. Sterling has failed to rally in a meaningful way as Brexit concerns continue to weigh on the Pound. Today, UK Prime Minister Theresa May is expected to reassure EU nationals already living in the UK that she will make is as easy as possible for them to remain post-Brexit. Lower than expected retail sales figures released this morning have weighed even further on the Pound, which will continue to take its cue from any rhetoric around the progress of Brexit talks. The Pound has so far fallen to an intraday low on the retail sales news.
Spain has confirmed it is taking steps to suspend Catalonia’s autonomy this morning, invoking Article 155, which means taking direct control of the region. Any further unrest leading to the violent scenes seen earlier this month could see the Euro take a hit, although it has strengthened initially on the news.
Halo Financial is delighted to be taking part in the Moneyfacts Consumer Awards. We have been shortlisted for the International Money Transfer Provider of the Year and need your vote to win!
You will also be entered into a prize draw for £1,000 which Moneyfacts are offering for all completed surveys. Please vote for us here!