Brexit woes, Loonie Deadline and China Golden Week

Weekly Report - 01/10/2018

Brexit woes, Loonie Deadline and China Golden Week


 Brexit woes will be in focus for the GBP while the British Prime minister May goes for the conference that begins next Sunday, with the PM scheduled to give a closing speech on Wednesday. We expect a lot of noise and Pound volatility, especially with Tory Party Brexiteers handling a separate conference on Monday and Tuesday. Chinas Golden week may not be that good for the global financial markets. September’s private sector PMI numbers lift more anxieties over the economic forecast for the world’s second-largest economy. Now China remains opposed for complying with the requirements of the U.S government.

The week that was

Last Friday Economic data published through the Asian session and was on the heavier side. The key stats include August building consent figures out of New Zealand, August job/applications ratio, prelim industrial production, retail sales, and September inflation numbers out of Japan and Australia’s private sector credit numbers for August. Building consents climbed by 7.8% on August, month-on-month, reversing most of July’s 10.3% slide. Auckland posted a record number of new homes consented to be built according to Stats NZ. The Kiwi Dollar went from $0.6607 to $0.6610 upon the statement of the data before advancing to $0.6612. The Japanese Yen advanced from ¥113.400 to ¥113.30 versus the greenback, upon the statement of the figures that arrived forward of production and retail sales numbers.


Main Focus This Week

 This week FOMC members could present their opinions on policy following Friday’s figures, and the latest FOMC projections still been fresh, the Dollar is questionable if is going to be too sensitive to the chatter. For the Aussie Dollar, Tuesday’s policy decision is a certain result, while how the RBA sees the economic forecast amidst the continuing trade war with China is not. Some care across the global economic outlook and potential shock on the Australian economy will possibly be key in the accompanying rate report. Another deadline crossed and Canada still in NAFTA talks in spite of president Trump’s snub of Canadian Prime Minister Trudeau. Will Canada come in line or could it actually end up with duties?


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