New position documents provide a positive step in the Brexit negotiations
- CAD - Wholesale Sales m/m: -0.5%
The UK released two position papers yesterday, outlining the UK’s stance on continuity in the availability of goods in the UK and EU markets, and the confidentiality and access to documents. Further documents on data protection and judicial cooperation are also set to be released this later week as the Brexit negotiations begin again on 29th August. Alexander Winterstein, a spokesman for the European Commission, said in a statement he sees the documents as a positive step; however, sufficient progress is needed in three areas: citizens’ rights, financial settlement, and Northern Ireland, before the EU will move forward in discussing the future relationship.
Across the pond, President Donald Trump addressed the nation last night in a live televised speech outlining the details of the U.S’ updated strategy for Afghanistan. This broadcast was Trump’s first televised prime time speech to the country since February. In July, Trump told advisors that ‘we are not winning’, indicating that he’s is not happy with the current situation and potential changes needed to be made. Rather than pulling troops out of Afghanistan, last night Trump stated his decision to stay and ‘fight to win.’ This decision changes the approach from a time-based one to one centred on assessing the conditions and progress as well as adding further troops to the ground. He also called on NATO allies and global partners to increase their troop numbers too. Trump’s address caused a boost in the greenback overnight, regaining some of its losses from earlier in the day.
- CAD - Core Retail Sales m/m
- EUR - German ZEW Economic Sentiment
- GBP - Public Sector Net Borrowing
Today, Canada will be releasing its Retail Sales figures for June, expected to show a monthly change of 0.3%. The nation has posted better-than-expected numbers for the past three months, so the markets will be closely watching to see if another bullish reading can push the Loonie back towards the two-year highs against the Greenback seen in July. From the Eurozone, the German ZEW Economic Sentiment report will be released, while the UK will be printing the Public Sector Net Borrowing figure, expected to drop to 0.4b.