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Forex Today: Speculation about the Brexit vote, assessing Chinese mixed figures, and the Fed's last rate hint
Here is what you need to know on Friday, October 18:
- Brexit remains in the spotlight as Prime Minister Boris Johnson is scrambling to get the votes in parliament to support his Brexit deal. The UK and the EU announced a deal on Thursday, sending sterling higher. However, the Democratic Unionist Party's rejection of the deal and uncertainty about what happens in case parliament fails to pass it limit the pound's gains. The House of Commons votes on the deal on Saturday and speculation about the vote is set to dominate trading. An extension, a second referendum, elections, and also a hard Brexit are on the cards. See Brexit: Four scenarios and GBP/USD reactions as the deal reaches parliament
- The impact goes well beyond GBP/USD. The US Dollar remains on the back foot amid a risk-on atmosphere.
- China reported Gross Domestic Gross of 6% yearly in the third quarter, the worst since the 1990s, and lower than expected. On the other hand, Industrial Production rose by 5.8% in September, substantially above expectations and providing relief.
- John Williams, President of the New York branch of the Federal Reserve, expressed optimism about the US economy and seemed reluctant to cut rates again later this month. Vice-Chair Richard Clarida speaks later today and will be the last Fed official to talk ahead of the October 30 decision.
- Turkey has agreed to pause its operations in Northern Syria, allowing the Kurds to retreat. The Turkish lira strengthened.
- Cryptocurrencies have stabilized. Ripple's XRP has retreated from the $0.30 level it topped on Thursday.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
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