Double jeopardy for GBP

The British pound continued slipping against other liquid currencies. The UK Independence party (UKIP), which goes for the country’s exit from the EU, won the European Parliament elections held in Britain on Thursday. This event casts doubt on the cooperation outlook with the largest trading partner. If the decision of the UK leaving the EU is taken, we would expect the pound to weaken no less than 10%. It dipped 0.3%, falling to $1.5645 on London Exchange. This is the most severe weakening of the national currency over the entire week.Stocks of European companies rose after Mario Draghi had spoken on inflation rate. Today Stoxx Europe 600 has upped 0.9% at the trading session opening on London Stock Exchange, approaching the weekly high +1.7%. The growth was also demonstrated by oil and gas companies: oil price boosted during the week for the first time since September. S&P 500 and MSCI Pacific showed weak growth by 0.3%, which has no significant fundamental reasons. 
Analysts are not consistent in their opinion after the OPEC meeting of 12 member-states: there is no single opinion on possible oil supply cuts. Therefore, slightly risen oil prices this week are likely to be explained as the price retreat in the face of uncertainty. Nevertheless, members of the organization recognize that the demand will be significantly lower next year. Brent crude oil fell 30% since June as US oil production was increasing for three consecutive quarters. However, weak global economic growth does not guarantee the expected demand. Opinions of OPEC members are also divided: if Saudi Arabia is resisting the demand cut, Venezuela and other countries are looking for ways to support the market before the meeting on November 27. The world’s largest meat company JBS announced its plans to increase exports to Asia. It happened after the Primo Group purchase, the largest meat producer in Australia and New Zealand. That gives the opportunity to increase the share of more expensive products and expand the market. Currently, Australia can not export about 20% of pork due to the lack of certification in the Chinese market. However, this restriction would be overleaped as the free trade agreement between the two countries enters into force beginning in 2018. The prospects for meat supply hike on the biggest Asian market resulted in F-CATTLE price drop: today the price has dropped 0.7% on Chicago Mercantile Exchange and indicated further reduction outlook.