The British Pound and Euro saw the biggest moves overnight in the lead up to this morning’s historic Brexit vote.
British lawmakers have rejected Prime Minister Theresa May’s Brexit divorce deal by a crushing 432-202 votes. With the clock ticking down to the 29th March deadline, the UK is now faced with a political crisis as the existing Brexit deal is now considered dead. May’s options include setting a course for a no-deal exit, delay Brexit, resignation, an election or second referendum. Labour leader Corbyn calls for vote of no confidence in May’s Government.
The NZDGBP hit a high of .5369 leading up to the vote and has since pared back to .5293 post the result.
ECB head Mario Draghi spoke to the European Parliament on Tuesday after a report showed German economic growth slowed to its weakest pace in five years. Draghi commented the Euro zone’s economy faces a longer slowdown, is not heading for a recession but still needs support from the European Central Banks. The slowdown in growth has been driven by weaker activity in China Markets amid trade tensions between the US and China. Markets have pushed out expectations for the ECBs first interest rate hike in 8 years to 2020.
NZ business confidence improved slightly in December with the New Zealand Institute of Economic Research (NZIER) survey at -18% up from -28% in the previous quarter. Firms views on future growth improved, however profitability remains weak.
NZ dairy prices saw its fourth consecutive rise overnight, rising +4.2% in the dairy auction.
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