- Sterling unmoved by GDp growth improvement
- US v China talks brinksmanship is escalating
- Central Bankers rule the roost today
The US President says China loves ripping off America and is set to impose another bout of tariffs in Chinese imports which will make pretty much all Chinese goods more expensive in the US. Understandably, critics are citing the fact that US citizens are the ones being penalised by these added costs but the President disagrees. Either way, trade talks continue between the US and China amidst these provocative tactics. The USD and Chinese Yuan are largely unmoved by the theatrics.
In the UK, there are two big issues; entirely intertwined though. Brexit negotiations between the Tory and Labour parties are going about as well as a naturist convention in a Siberian winter. The pressure is on though because, if the polls are right, they are both going to be wiped out by the Brexit Party in the EU elections…if they are daft enough to let them go ahead. No one likes being humiliated, especially not MPs; although they are prone to regularly humiliating themselves without any outside interference. Sterling is a little downbeat while the interminable navel gazing continues. However, we see spikes any time a final deal is mooted, so be ready for the rally in the pound if that does happen. The Pound starts the week at roughly €1.16 and $1.30. Friday's GDP data rise was explained away as businesses stockpiling ahead of a Brexit final date, so the Pound failed to capitalise on it.
Strong Canadian employment data on |Friday boosted the Canadian dollar, as you would expect it to. Commodity markets are also holding up well in spite of China's slowdown, so the CAD is benefitting from that as well.
That is at odds with the Australasian Dollars which are both weaker as their respective central banks have adopted a negative tone. The RBNZ cute their base rate last week and the RBA is expected to do the same - possibly at their next meeting.
Today is largely dominated by central banks. We have speeches from members of the US Federal reserve, the Bank of Canada and we have already had a speech from a Reserve Bank of Australia member this morning.
And I love the story of fake stamps beading the image of Labour MP Dianne Abbott which are apparently making their way through the Royal Mail system. It would be funnier if the image was of her with a can of Mojito in hand but it is funny enough.