Markets digest Brexit ‘No Deal’
- GBP - Construction PMI: 53.1
- NZD - RBNZ Gov Spencer Speaks
- AUD - Retail Sales m/m: 0.5%
Sterling saw a raft of volatility yesterday surrounding the ongoing Brexit talks. There was speculation before during and after Theresa Mays meeting in Brussels yesterday. It was initially perceived that Brexit talks had come to a halt which weakened the pound and the news later transitioned into talks potentially coming to an agreement which saw sterling shoot up only to find it lose its gains off the back of Theresa May having to pull out last minute.
- GBP - Services PMI
- CAD - Trade Balance
- AUD - GDP q/q
Today, focus turned to economic date. Firstly, UK services PMI posted a much worse than expected figure, registering a 53.8 which sent the Pound below a key psychological level this morning. Australia had positive news new with their retail sales up to 0.5% along with Canada a positive -1.5B in their trade balance result. The U.S released ISM Non – Manufacturing PMI which, like the UK also failed to meet expectations, posting a 57.4 against 59.2.
Brexit is still dominating the headlines. Yesterday's shock announcement that no final agreement was made still saw both sides come away optimistic that a deal agreement is very much on the horizon. However, yesterdays events also emphasised that the time they have in doing so successfully is now tight. The progress then of this will unfold thought the rest of this week, as it is expected Theresa May will meet with Jean Claude Juncker for the second time this week.