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Brexit No Deal:
The U.K Parliament last night voted against the Brexit deal brokered by Theresa May and Europe which could trigger new national elections and a fresh Brexit referendum within the next few weeks. AUD/GBP surprisingly is little changed this morning with the market perhaps seeing the failed vote as a new opportunity for the U.K to remain a part of Europe and avoid the potential pitfalls and headwinds of a life not conjoined to Europe’s hip.
U.S and European equities moved higher overnight managing to add as much as 1.71% on the NASDAQ in the U.S and nearly 0.6% on the London FTSE following the no deal Brexit vote. AUD/USD is little changed like AUD/GBP however AUD/EUR has rallied around half a percent overnight. U.S PPI aka the producer prices index failed to meet expectations as producer prices fell by -0.2% during December. The decline in U.S producer prices was the sharpest in two and a half years and perhaps stems from the ongoing trade dispute with China and lower oil prices with WTI prices down around 20% during December.
In the U.K we will hear from Bank of England Governor Carney – no doubt there will be comments about the recent no deal Brexit vote and any support the Bank of England will provide.
AUD EXCHANGE RATES:
AUD/USD – 0.7170
AUD/GBP – 0.5561
AUD/EUR – 0.6280
AUD/NZD – 1.0530
AUD/JPY – 78.001
USD/BTC – $3,547
All Ords (XAO) – 5,871
Gold – A$1,790/oz
Silver – A$21.64/oz
WTI – US$50.93/barrel
DATA RELEASES TODAY:
EUR – BOE Gov Carney Speaks at 8.15pm
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