Previous Day's Market Highlights
Sterling recovered on renewed Brexit deal optimism and the UK cabinet was said to be told to expect a backstop decision this week. Pound Sterling rallied against its majors and reached April 2018 highs vs. Euro and the Pound–to–Dollar closed over 1.0% higher. News of an Irish border breakthrough also contributed to the Pound’s strength yesterday afternoon as it was reported that the EU and UK have agreed a text on how to avoid a hard border, suggesting a Brexit deal has been reached.
The news of a breakthrough on the Irish border was first reported by Ireland’s RTE News.
Markets reacted positively in response to the news that the progress does enough to allow a sign off for a deal before the end of November.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
On the macro data front, Consumer Price Index out from the UK today is expected to be released 0.1% better than previous of 2.4%.
The Pound is up against the Dollar and Euro this morning as the UK and EU officials agreed a draft Brexit agreement. Theresa May is now faced with the task of getting Cabinet approval of the draft and then more challengingly, passing it through Parliament. They will gather at Downing Street this afternoon at 2.00pm.
The markets will be pouncing immediately on any Brexit related news and we would expect further gains in Sterling in the short-term on a headline suggesting. However Sterling bulls are yet to celebrate fearing that the deal in its current form will be rejected by Brexiteers in the conservative party and by Northern Ireland’s DUP.
Today's Economic Calendar
|12:30am||AUD||Labour Price Index (y/y)||2.3%||2.1%|
|9:30am||GBP||Consumer Price Index (y/y)||2.5%||2.4%|
|9:30am||GBP||Producer Price Index (y/y)||4.0%||4.0%|
|1:30pm||USD||Consumer Price Index (m/m)||0.3%||0.1%|