GBP weakens as Brexit advances stall

Lack of news pressures the pound

GBP/USD slid to an 11-day low in Asian trading as hopes for absolute Brexit news were dashed after weekend meetings between UK ministers. There had been hopes that PM May could call a full Cabinet meeting either today or tomorrow to approve the latest  Brexit terms following conference calls with ministers on Sunday. There is no news so far, so markets have assumed the worst, pushing GBP/USD to intra-day lows of 1.2918, and the FX pair looks set for its third down-day in a row.

GBP/USD Daily Chart

Source: OANDA fxTrade

Equities rebound after a slow start

US equity futures markets trended higher during the Asian session, pulling Asian indices higher with them. The Japan 225 index added 0.80% while China shares advanced 0.97%. The HongKong33 index outperformed with gains of 1.45% and the NAS100 CFD gained 0.93%.

The oil market’s far reaching implications

On the currency front, the US dollar was marginally weaker, allowing AUD/USD to advance 0.1%, though both the Pound and Euro failed to benefit, due to the Brexit stalemate. USD/CNH was steady near 11-day highs. Oil rebounded from below $60 per barrel, snapping a 10-day losing streak, after weekend OPEC signals on production.

USD/CNH Daily Chart

Source: OANDA fxTrade

Barren data calendar

It’s a slow day on the data front today, with some US markets closed to commemorate Veterans Day. Japan machine tool orders for October are due followed by Italy’s industrial output data for October. The only item of note on the Americas calendar is a speech by the Fed’s Daly (voter, neutral).

The full MarketPulse data calendar may be viewed at https://www.marketpulse.com/economic-events/

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