Osborne and Cameron vote to Bremain

Yesterday’s markets

11th May 2016

  • USD FOMC Member Dudley Speaks
  • USD Goods Trade Balance: -11.2B
  • USD JOLTS Job Openings: 5.76M
  • NZD RBNZ Financial Stability Report
  • NZD RBNZ Gov Wheeler Speaks

There was further momentum for the vote to stay this week with help from PM David Cameron and Chancellor of the Exchequer George Osborne. George Osborne warned that a vote for Britain to leave the EU would drive down house prices, whilst Cameron warned that a vote to leave the Euro could spark war in Europe. We also had the latest survey from the BCC (British Chamber of Commerce) released. The largest independent business survey in the UK. The survey showed that 54% are in favour of staying in, leaving 37% voting to leave. Another key point from this survey was that 9/10 members said they were unlikely to change their mind before the vote. Businesses voting to stay in will be a strong signal to the general public ahead of the vote. 

In other news, the Brazilian Real plummeted the most in four years, before lawmaker Waldir Maranhao (Interim Head of the Lower House of Parliament), called for a new impeachment vote in his chamber. This decision will now allow the Senate to vote on President Dilma Rouseff’s impeachment today. Rouseff is currently fighting for her political survival as she faces allegations that she manipulated government accounts to hide a shortfall in the government’s budget.

Today’s markets

10th May 2016

  • GBP Manufacturing Production m/m
  • CAD Gov Council Member Wilkins Speaks
  • USD Crude Oil Inventories
  • AUD RBA Assist Gov Edey Speaks
  • JPY Current Account

The UK post the monthly Manufacturing and Industrial Production readings today, where markets will see if these will release more positive figures than last time. The last reading was below the zero figure and saw the Pound lose ground. Again, it is expected that both will show an increase for April and if seen could support the Pound. In the afternoon, the US will post their Crude Oil Inventories with current storage at 2.8m.