Forecasts & opinions
After seven Labour MPs quit the party, May's own party tried to persuade her to take the threat of a no-deal divorce off the table, and the announcement that Honda's Swindon plant is expected to close down yesterday, things are not looking so good on the Brexit front.
The financial and political world have all eyes on the U.K. as the runup to Brexit is getting nearer and nearer. The constant back and forth from London to Brussels, the debates in the British parliament and the British economy have all taken up space on our daily newsfeeds.
With only six weeks left until the official Brexit date, the U.K. is now set to compromise on its demands for a re-write of the Brexit agreement, according to Bloomberg.
New Zealand's official cash rate, as reported in the monetary policy statement released by the Reserve Bank of New Zealand, has remained unchanged at 1.75 percent. This rate is expected to stay at this level through 2019 and 2020, according to the report.
Later today The Bank of England (BoE) will release its first Interest Rate publication for the year. The fact that the way towards Brexit, and its outcome, are still unsure, seems to put the growth of the British economy at a sluggish pace.
Reuters announced over the weekend that the Brexit date could be pushed back "by a couple of extra weeks." This statement comes to light just before Parliament is scheduled to vote on Theresa May's Plan B tomorrow.
The extension will give lawmakers time to approve legislation, said the leader of the Commons, Andrea Leadsom. But how will the voting go on Plan B tomorrow, after May's first Brexit plan was voted down by 432 votes to 202 votes in favour?
The bullion pushed higher, boosted by the weakening greenback and was trading 0.60% stronger during the US session, hovering at around 1,245 USD, which are levels last seen in July this summer.
Earlier today, traders watched the US labor market data. The non-farm payrolls slowed sharply in November and the US economy created only 155,000 new jobs, against expectations of 200,000, while the previous number was revised lower to 237,000. The unemployment rate remained unchanged at 3.7%.
The USDJPY pair declined sharply on Thursday and was trading 0.80% weaker during the US session, hovering below 112.40.
US bond yields plummeted again on Thursday, which dragged the USDJPY lower with them. The 10-year yield is now at 2.85% and the 30-year trades at around 3.12%. Moreover, the short-term yield curve remains inverted, confirming the risk-off sentiment.
Sentiment deteriorated on Tuesday as investors started to question the benefits of the weekend trade truce between USA and China and stocks fell, along with JPY cross. US bond yields also moved sharply lower, while the short-term part of the yield curve is already inverted, implying a possible recession over the next quarters.
Monday was another positive day for global equities and US indices were up 1%, while EU benchmarks surged more than 1% during the US session. However, indices were down notably from overnight highs reached during the Asian session as some profit taking hit the markets in the afternoon.
|remaining time till the new event being published|
- Bundesbank: German growth to remain subdued at least in first half of 2019
- EU will react swiftly if U.S. hits it with car tariffs - European Commission
- Unemployment in the UK remained at 4%, as expected
- Bank of Japan Governor Kuroda: BOJ policy does not have currency manipulation as its target