Sterling: After registering large gains in response to reaching an agreement over Brexit, Sterling reversed back to 0.89 with respect to the Euro, after uncertainty over whether Parliament will support Teresa May’s agreed plan. 2 Hence, the most important day for Sterling is December 11, when the vote will take place, while the next BoE meeting will take place on December 20, here, if a Brexit deal is reached, a rate hike will likely take place.Another important day is December 10 when industrial production and GDP come out.
Yen: Higher than expected imports, despite strong export performance led the Yen to depreciate against the Dollar, with inflation remaining at the same levels as last month.The economy ppears to have been stabilized with inflation slowly but steadily increasing,even though household spending was negative. The BoJ rate decision on December 20 is not expected to post surprises.
Aussie: The Aussie has gained against the Euro and the Loonie again, after a large improvement on the trade balance, despite slowing Retail Sales and a continued reduction in mortgage and investment lending. December starts with the
trading signals Balanceon December3,with the interest rate decision on the following day not expected to register any change Q3 GDP data will be released on December 5.
