Brexit drama, CPI data on headlines, US stocks tumble
- Rumours that May's statement is imminent
- BREXIT: DUP Brexit spokesman on the wires
- Brexit latest - Vote of no confidence or no confidences?
- Some Brexiteers are now switching from wait and see mode
- Call of No confidence tomorrow by Brexiteer's angry at outcome of today
- 27 EU Ambassadors end Brexit discussion
- Number 10 now saying PM will make a short statement
- UK Prime Minister will not deliver a Brexit statement to media on Weds evening
- Apple falls away from the 200EMA on the Daily Chart
- GBPUSD rejecting overhead daily resistance at 1.3037
- Brexit: Cabinet meeting running over. Not expected to finish until 1800 GMT
- European equities down
- What's behind the Oil Slump? Supply and Demand issues
- USDJPY now down and testing 100 EMA
- Bank of Canada survey - key points
- IMF on Brexit impact, Deal vs No-Deal outlook
- EUR/USD shoots up to 200EMA and is rejected
- Large spike in USDCAD to 1.3263
- USDJPY completes CPI data lap. Back to 113.90
- Very strong chance that UK'S David Mundell will resign from cabinet
- OIL approaching first test of it's recovery from 55.00
- US Stocks open up
- GBPUSD retraces Cabinet resignations drop
- UK FTSE 100 hits day's high on Cabinet resignations
- Two Brexit Cabinet members to resign today
- "The Good the Bad and the Ugly" scenarios as UK Cabinet meet for Brexit deal
- USDJPY deciding on direction after as expected headline CPI data
- US Treasury Yields rise after brief decline following US CPI Data
- US October CPI +2.5% vs +2.5% y/y expected
- UK Cabinet meeting in 1 hour: Watch out for volatility ahead on GBP/USD.
Markets:
- NZD leads, GBP lags on the day
- European equities lower,
- US
- US 10-year yields -1.63% to 3.09
- WTI up +0.82% to $56.14
- Bitcoin dopwn 11.60% to $5551.17
- DOW -0.77%
- S&P 500 -0.68%
- Nasdaq down -0.68%
Well, what a session. The Brexit news was relentless and contradictory which led to some very volatile moves in the GBP. GBPUSD moved in a range from 1.3030 to 1.2870 as the Cabinet meeting took place. Delays, rumours and talk of a no confidence vote had the GBP pinging around the range. In the end Theresa May spoke and said that she had the backing of her cabinet. However, the reality of that backing remains to be seen given how hard it was for May. You really do have to feel for her trying to solve this Brexit problem. How that woman holds on I have no idea. But hold on she does, so well done her for sticking to her guns and she keeps on getting through the hoops.
Bitcoin had an enormous loss falling over -13.00%, currently at 5415.01 and still falling as I type. Bitcoin has never really lived up to the hype and today's price action is a large vote of no confidence. Considering that Bitcoin was bought up largely by retail investors this is a bad omen. Most new retail investors go Kaput in the market. Will this happen to Bitcoin as it's future will be further called into question after today's losses
Talking of big losers, oil was yesterdays. However, WTI crude staged a modest recovery from the 55.00 handle as expected. Currently up +1.42% at 56.48
US and UK stocks were in the red and suffering. The Dow and S&P 500 down both over -1.00% respectively. US CPI headline data came in as expected. The rest of the data was as follows and only average weekly earnings was down. The rest was expected and a minor beat for avg hourly earnings.
- Ex-food and energy +2.1% vs +2.2% exp
- Avg weekly earnings +0.9% y/y vs +1.1% prior
- Avg hourly earnings +0.7% vs +0.5% prior
Month-over-month data:
- CPI 0.3% vs +0.3% exp
- Prior +0.1%
- Ex food and energy 0.2% vs +0.2% exp
- Prior ex food and energy +0.1%
Well, that's all from me for today. Covering the last two Brexit days has felt like a couple of the 12 tasks Hercules had. I wonder what tomorrow brings, lol. I leave you now in the very capable hands of Eamonn who will be your guide through the next hours ahead. Good evening and thank you one and all for your comments and contribution over the last session.
