Compass Global Markets' Blog

Market Update - 16th January 2019 - AUD Stable & Brexit No Deal Vote Could See Fresh Referendum

Posted by Patrick Downes on January 16, 2019 at 8:45 AM

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

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.

Other News: 

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

OTHER MARKETS:

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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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
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