Brexit continues to dominate the headlines, with uncertainty remaining high. Boris is calling for an election on the 12th December, but Corbyn won’t back it unless no-deal is taken off the table. The government will also reintroduce the Withdrawal Agreement Bill. Meanwhile, we await the EU’s response to the UK’s request for an extension, and for how long that will be.
In Europe, the central bank kept policy on hold yesterday as expected, though the market does expect further interest rate cuts in Q1 of next year, as they attempt to stimulate stubbornly low growth.
Whilst in the US, though the economy remains resilient, the ongoing trade dispute with China, and slowing global growth mean a further interest rate cut next week is highly likely.
On the exchanges, sterling gave up some of its recent strength yesterday on the heightened uncertainty a general election may cause.
GBP/USD had nudged 1.3000 earlier this week, but has not had the momentum to break through just yet. There is strong buying interest building ahead of 1.2750, whilst a break through 1.3000 would initially target 1.3250.
GBP/EUR, the initial levels to watch are 1.1500 – 1.1700.
However, sentiment will of course be directed by how the political uncertainty over Brexit plays out over the coming days and weeks.
|29/10/19||UK Mortgage Approvals||65.5k||65.1k|
|30/10/19||US GDP Annualised QoQ||2.0%||1.6%|
|30/10/19||US FOMC Upper Bound||2.00%||1.75%|
|31/10/19||EU GDP SA YoY||1.2%||1.1%|
|31/10/19||EU CPI Estimate YoY||0.9%||0.7%|
|1/11/19||US Nonfarm Payrolls||136k||95k|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2784||+10.04%|
UK Benchmark Rates
|3 month||0.80513%||2 year||0.78%|
|6 month||0.87838%||3 year||0.78%|
|12 month||0.97413%||5 year||0.78%|
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