Brexit vote is finally upon us and guess who is happy?
A big week ahead for markets, particularly for the UK, where votes, speeches and data are all due for release.
The euro tanked late on Friday to reverse most of the gains it made earlier in the week. The EUR/USD opened the session at $1.14966 and climbed throughout early and mid-session trading, peaking at $1.15394. The pair remained steady for a short while after before falling off a cliff late in the day as it tumbled to a low of $1.14571. It is not far off that low at the moment, currently trading at $1.14616. The GBP/USD was a polar opposite to its European counterpart, surging throughout Friday trading. The pair opened at $1.27429, remained steady early and then fell to a low of $1.27083. The pound then rallied off those lows, powering its way to a high of $1.28654 late in the day. It is just below those levels, as it is currently trading at $1.28543.
The Dow opened and closed reasonably flat but there were some movements in between. The index opened at 23,981.76 and traded in a tight range for the first half of the session before lifting to a high of 24,016.45. The Dow then slid over the next few hours, where it hit a low of 23,788.01. It was able to bounce off those lows and it closed at 23,974.20. The Dax turned negative for the session, with the German index unable to capitalise on a falling euro. The Dax opened at 10,951.93 and bumped up to a high of 10,963.70 during the opening hour. It declined over the next few hours until it bottomed-out at 10,829.10. The Dax was able to climb off those lows and it closed at 10,892.10.
It’s a big week for the UK and Theresa May as the parliament votes on her Brexit deal. The Prime Minister has been under fire ever since she took the top job, such is the importance and the divisive nature that Brexit has become. She has toiled away endlessly and must be happy and relieved that the vote is finally here. Perhaps even happy enough to break out into a little dance. Although the chances of the parliament passing her deal shrink by the day, she can at least say that she has done all she can to get a deal done.
The data released today and the most significant this week includes:
Today – Australian MI Inflation Gauge & Inflation Expectations, China Trade Balance, German WPI, European Industrial Production
Tuesday – US PPI & Core PPI, ECB President Mario Draghi speaks
Wednesday – UK Parliament votes, UK CPI, BoE Governor Mark Carney speaks
Thursday – G20 Meetings, BoJ Governor Haruhiko Kuroda speaks
Friday – G20 Meetings, UK Retail Sales, Canadian CPI
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