US Dollar falls to weakest currency on central bank
|Today's Highlights
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The US Dollar is the weakest currency over the last 24 hours
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Global Brexit warnings to UK Prime Minister
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Not much to write home about in the Antipodes
Current Market Overview
The US Dollar is the weakest currency over the last 24 hours after Federal Reserve Chairman Powell’s comments – he said that the Federal Reserve is patient and would see how the US economy unfolded; they have the necessary tools to deal with developments in the US economy. The Federal Reserve has indicated that they will raise rates at least twice this year, however, markets are not convinced; and recent dovish commentary has helped to weaken the US Dollar. Inflation is low and not a concern at this stage, suggesting that higher rates may not be necessary for the time being. This afternoon’s US Consumer Price Index (CPI) data will be the main event for today.
Global Brexit warnings to UK Prime Minister
Also yesterday, Shinzo Abe warned the UK Prime Minister against no-deal Brexit. Japanese investment in the UK would doubtless be affected with a hard Brexit, which would endanger tens of thousands of jobs. The Confederation of British Industry (CBI) Director also warned against a no-deal Brexit, saying it would cause an 8% drop in Gross Domestic Product (GDP), unemployment to double and interest rates to increase to 4%, which would double people’s mortgage payments and put thousands of homeowners under enormous financial pressure. This morning, UK November GDP will be released, along with industrial production and trade balance data, which will be overshadowed, as ever, by Brexit news.
Not much to write home about in the Antipodes
Overnight, Australian retail sales results were in line with forecasts at 0.4% in November, whilst in New Zealand, building permits dropped -2.0%.
This morning UK Nov GDP will be released along with industrial production and trade balance data which to be fair, will be overshadowed by Brexit news . This afternoon US CPI data will be the main event.
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