The Kiwi Dollar opens the day little changed from yesterdays levels as markets await key interest rate decisions and economic data releases later in the week. Most currencies were stable apart from the British Pound which fell to a 2 year low amid rising no-deal Brexit concerns.
No-Deal Brexit Fears Weigh on Pound
The British Pound was the major mover overnight falling to a two year low as PM Boris Johnson’s new cabinet members continue to make headlines with various Brexit comments. Michael Gove, Johnson’s top aide, stated that a “no-deal is now a very real prospect”, while Johnson himself has said we are going to ‘come out on October 31 deal or no deal’.
U.S-China Trade Talks Recommence
Face-to-face trade talks resume today in Shanghai. Expectations of any major breakthrough remain low as neither side have demonstrated any urgency to reach a compromise ahead of the meeting. Meanwhile on the domestic front, President Trump took another swipe at the Fed, urging the central bank to do more than ‘a small rate cut’. The start of the major U.S data releases commence tonight with both U.S Consumption and Consumer Confidence numbers due out early tomorrow morning.
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