Political Uncertainties, Brexit in Focus as Negotiations Resume

Brexit negotiations resume today after political uncertainties weighed on the pound during another quiet calendar day yesterday.

Previous Day's Market Highlights

Political uncertainties facing the UK government ahead of the next round of Brexit negotiations, starting Thursday, were in focus. These include the implications of recent sexual misconduct allegations and the resignation of the international development secretary, Priti Patel, on Wednesday.
 
This weighed on the pound during an otherwise largely quiet calendar day. Sterling-eurobriefly dipped below 1.1300 and sterling-dollar saw lows below 1.3100. The Canadian dollar had a muted reaction against the pound when EIA crude oil data showed that weekly inventories unexpectedly rose.
 
The RBNZ kept interest rates on hold at 1.75% and projected a rate hike in Q2 2019, sooner than previously anticipated, as inflation forecasts were revised higher. The kiwi dollar strengthened against the pound.

Today's Market Highlights

The quiet calendar continues. Traders will keep an eye on any headlines from the latest round of Brexit negotiations, which resume today and continue to pose a downside risk to the pound. The main release today is US Initial Jobless Claims (13:30 GMT), which may have limited impact barring any surprises. A low figure would continue to indicate a strengthening labour market.
 
Markets will also look for any clues as to the direction of policy during comments from the ECB’s Cœuré, who participates in a panel discussion (10:00, 13:00 GMT); VP Constancio, who will give the keynote address at a Financial Regulatory Outlook Conference (13:45 GMT; and Lautenschläger, who speaks at a conference on Monetary, Financial, and Prudential Policy Interactions in the Post-Crisis World (18:20 GMT).
 
Tomorrow, UK Manufacturing and Industrial Production data will be in focus.

Today's Economic Calendar

Time Currency Release Consensus Previous
10:00 EUR ECB's Coeure Speaks
13:00 GBP NIESR GDP Estimate 3M (Oct) 0.4%
13:30 USD Initial Jobless Claims (3 Nov) 231K 229K
13:30 CAD New Housing Price Index YoY (sep) 3.8%
13:45 EUR ECB VP Constancio Speaks
18:00 EUR German Buba President Weidmann Speaks
18:20 EUR RBNZ Press Conference ECB's Lautenschalger Speaks
00:30 AUD RBA Monetary Policy Statement