Apart from the usual tantrums in Washington DC, today was all about Brexit. Yesterday they were close, but the DUP weren’t happy. Today brought the headline many were waiting for – “an agreement between the UK and EU on a Brexit deal”.
Tuesday starts with the same old themes on the table. Brexit negotiations continue with one Irish official stating that “negotiating teams made progress but slow.”
This week starts with the usual themes of trade talks and Brexit making the headlines. President Trump described the trade deal reached thus far as being ‘very substantial’, but some analysts are seeing it as more of a temporary truce than a real deal.
What a week last week was with Brexit and trade negotiations between the US and China taking centre stage. Amazing how both have been making headlines for months and now at almost the same time, both appear to be drawing towards potentially positive solutions.
October 10th has been on the radar for a while. The day the US and China sit down for formal talks on trade. But before the actual event, we had rumours of the Chinese willing to do a deal, followed by rumours of a lower level meeting breaking down and subsequent denial.
Ongoing demonstrations in Hong Kong are making most of the early headlines, but the markets choose to shrug them off. By the time the US day begins, FX markets are almost unchanged from the Friday close with AUD and NZD being the only real movers among the major currencies.
The first Friday of the month and we all know what that means. US Non-Farm Payroll data. Not much to report before the number but it does get released against a backdrop of two very weak ISM numbers over the past couple of days.
Welcome to a new month and the last quarter of the year. The day begins with Chinese celebrations on the 70th anniversary of Communist rule in China.
Welcome to Friday’s analysis and the familiar themes of Brexit, trade negotiations and Trump impeachment enquiries. Late day news on Thursday that trade negotiations with China would restart on October 10th, set a positive tone for the last day of the week.
Not the best of days for either the US President or the UK Prime Minister. GBP’s woes continued initially trading down to 1.2303, which in turn dragged EURUSD to a new low of 1.0923, marginally breaking the double bottom in place at 1.0927.