Currency Market Analysis

Dec 11, 2018 | Currency Market Analysis

Global Themes

GBP hit as May pulls Brexit deal

The British pound was sharply lower overnight as the UK’s Brexit fell into limbo after the Conservative government cancelled this week’s vote on the post-Brexit deal.

The GBPSGD fell 1.0% and slipped back to the lowest levels since March 2017.

The move means the UK’s Brexit process has an uncertain future that could see further weakness for the British pound.

Dow back to lows

In the US, further selling in sharemarkets saw the USD supported as investors moved back into safe haven assets.

The US’s Dow Jones index fell to the lowest level since April before later recovering.

In other markets, the euro and Japanese yen both fell from two-week highs.

Producer prices

Across markets, tonight’s focus will be in the US producer prices index ahead of tomorrow night’s US inflation numbers.

Later in the week, the European Central Bank meets on Thursday.

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