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Pound Tumbles on Brexit Uncertainty

Published November 13, 2018

The USD is the biggest performer overnight as growing Brexit and Italian budget concerns weigh on markets. The NZD has fared well opening higher against the AUD, EUR and GBP.

Italian Budget Puts Euro On Backfoot

The EU has given Rome until tonight to present a revised version of their budget plan after the first plan was rejected last month by the European Commission, arguing it would lead to a much wider deficit. Brexit woes also hit the Euro, giving NZ importers an opportunity to buy at 5-month highs.

GBP Punished on Brexit Uncertainty

The Pound slumped overnight on increasing tensions within British PM Theresa May’s government over whether she can negotiate a deal. With an increased number of MPs threatening to oppose May’s Brexit plans, the PM has been forced to drop her plan for an emergency cabinet meeting today to approve a Brexit deal. The Irish border remains the key deadlock in negotiations. If there is a breakthrough in negotiations, a Brexit summit with EU leaders could be called later this month on 25th November.

Data Today:
NZ food prices at 10.45am
AU NAB business confidence at 1.30pm
EU German CPI at 8pm

With little data due out today the Kiwi will take direction from announcements offshore.