Brexit or not to Brexit

10 November, 2015

Reality hit home yesterday as risk aversion set in causing equities to sell off but FX markets had a placid session in the absence of any major economic data releases. Sterling and the FTSE will be the ones to watch today with David Cameron making his big speech on the UK membership of the European Union and already this morning GBPUSD is a little softer, however the FTSE is expected to recoup the 6300 level on the open this morning. He will set out his four major reforms and the clock will start ticking until the referendum takes place, regardless of whether an official date is set today or not, as we know for sure it will be before the end of 2017. The major issue faced by Cameron is timing because if his demands require treaty changes that need to be ratified before the vote then the end of 2017 is unrealistic since it can take many years for all member states to accept such structural alterations. One thing is certain and that is today the starting gun will fire leading to many months of debate over whether Brexit is in the best interests of the UK, its businesses and people.

Softer inflation from China overnight has had little impact on the markets so far as tomorrow’s retail sales and industrial production are more likely to have an effect. The economic calendar is quiet today so it’s all eyes on sterling where cable is now testing 1.5100 at the time of writing.


Source link  
Fed Holds Rates for Now But...

Unsurprisingly, the Federal Reserve kept rates on hold following the end of its 2-day meeting on Wednesday. They did, however, indicate that...

UK Unemployment at 42 Year Low

UK unemployment fell to its lowest level since 1975, data on Wednesday revealed. Unemployment fell by 75K, bringing the unemployment...

US Equities at Record Levels

US equities closed at record levels on Wednesday, as improved risk-on sentiment returned to the markets and news that the US economy...


USD Stabilizes

Hurricane Irma has, reportedly, inflicted less damage on the US mainland than was originally predicted, thereby reducing the economic impact of the devastation it was expected to...

Markets on Edge

With the markets risk appetite dampened after North Korea’s most powerful nuclear test to date, USD and Global equities fell whilst Gold, Yen and Sovereign Bonds all rose....

Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...


US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...

Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...

All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

  


Share: