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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

May survives no confidence vote

Published December 13, 2018

Author: Dennis Li

British Prime Minister Teresa May promised on Wednesday to step down before the next parliamentary election due in 2022 as an inducement to wavering conservative MPs before she survived the no confidence vote at 8am this morning Sydney time. The AUDGBP gave up all of its Tuesday’s gain overnight. However, as there is less than 4 months before Britain is due to leave the EU on 29 March, the country’s divorce with the bloc is still in chaos with options ranging from a ‘no deal’ exit to another referendum that could reverse it. Meanwhile, the AUD remains steady against the USD as markets await progress of trade talk between the world’s two biggest economies.

  • Italian Prime Minister Conte said on Wednesday that the country has offered to lower its deficit target for next year with the European Commission declaring that good progress has been made in a dispute over Italy’s budget.
  • President Trump said on Tuesday it would be a mistake if the Fed raises interest rates when it holds its meeting next week, continuing his criticism against the US central bank.
  • US consumer prices remained unchanged in November, held back by a sharp decline in the price of gasoline but suggesting inflation pressures continued to be firm amid rising rents and healthcare costs.
  • US President Trump said on Tuesday that he would intervene with the US Justice Department in the case against Chinese telecommunication Huawei’s CFO if it would help to secure a trade deal with China.

Tonight investors could keep an eye on the ECB’s last rate decision meeting in 2018 with expectation to have its interest rates remained unchanged.