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Currency Market Analysis

Nov 14, 2018 | Currency Market Analysis

Global Themes

GBP jumps as Brexit deal looms; US CPI in focus

The British pound jumped higher overnight as the long-running Brexit negotiations neared a resolution.

A final deal for the UK’s post-Brexit relationship has been agreed by bureaucrats in the UK and EU, but the deal still requires approval from the UK and European parliament.

A key meeting of the UK Cabinet is expected overnight but the situation remains uncertain and unpredictable as ideological differences drive debate in the UK.

Trade news

Locally, the USDSGD fell on positive reports about ongoing discussions between US and Chinese trade officials.

The USDSGD fell from levels near 16-month highs.

In other markets, the euro was higher while the Japanese yen was lower.

CPI

Today sees a large amount of data released with Australian, Chinese and US reports all due.

In Australia, the quarterly wage price index was released in line with expectations.

Later, Chinese industrial production and retail sales are both released at 10.00am.

Overnight, FX markets will focus on US consumer inflation. After last week’s stronger wholesale inflation, a higher reading could boost the US dollar. The market is looking for a 2.5% annual rate.


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