- Sterling steady amidst Brexit Rhetoric
- New Zealand consumer confidence down
By David Johnson
‘Twas the week before Christmas…
With just seven more sleeps ‘til Christmas, a lot of businesses and the markets will be starting to wind down this week. Not so the UK Prime Minister and her EU counterparts, who will be starting the round whatever of Brexit negotiations amidst all the usual rhetoric about how hopeless the position of ‘the other side’ is in the talks. With so much uncertainty, though, the Pound continues to meander around €1.13 and US$1.33.
We will get the Confederation of British Industry (CBI) industrial trends survey for the UK at 11.00 GMT today; and that is expected to be marginally down on the November reading. Sterling traders are so absorbed by Brexit right now that this data could well pass largely unmentioned.
New Zealand consumer confidence takes a tumble
We heard overnight that consumer confidence in New Zealand slipped a little this month. The index reading of 121.8 was down from November’s 123.7 and the third decline in a row; not great news for retailers as the Christmas shopping period continues. The Sterling – New Zealand Dollar rate is up around NZ$1.90 and that makes the Kiwi Dollar relatively attractive for buyers.
Gauging the mood down under
Overnight tonight, we will get the minutes from the last Reserve Bank of Australia (RBA) meeting. Those will be inspected minutely for any hints of change from the RBA. I suspect no such hints will be evident, but the mood and tone of the minutes could well affect the Aussie Dollar. The direction of that change is a moot point at this stage. Overnight orders are the most effective tool in such situations for northern hemisphere clients.
Eurozone inflation data today
Today’s data diary is a pretty quiet one, apart from the Eurozone inflation data for November. This is the final version of that data and the previous estimate pointed to a 1.5% annual rate. It is unlikely that will be revised.
Doing the right thing?
And doing the right thing can backfire unless you keep your thoughts to yourself. A group of three women had a meal in a restaurant in Edinburgh but had to wait 45 minutes for their food. They had three bottles of Prosecco between the three of them during the evening. They complained about the wait and the manager agreed to knock one of the £23 bottles off the bill. All good, until the till receipt printed out with “Complimentary Item –£23.00… Name – pain in the ass wom”. Oops! All your good work undone in a flash.