Sterling poised as U.K. Avoids a Technical Recession,Created 11/11/2019 at 10:09AM
NZD and JPY are the top G10 FX gainers today, up 0.54% and 0.26% vs the dollar while NOK and SEK are the top losers, down -0.32% and -0.19% vs the dollar. The euro hit a four-week low versus the USD on optimism of a trade deal between China and the U.S. There are hopes both countries will roll back their tariffs to boost an ailing global economy.
The pound remained unfazed on Monday despite slightly softer than expected GDP numbers. The market was relieved that the U.K. did not hit a technical recession. The focus will turn to General Election but we suspect a slow grind lower ahead of the election.
In the Asian equities space, the Nikkei 225 closed -0.26% at 23,331.84, Hang Seng closed -2.62% at 26926.55 and Kospi ended -0.61% at 2124.09. The European equities were trading weaker with the FTSE down -0.59% at 7315.91, DAX down -0.27% at 13192.24, and CAC down -0.01% at 5888.86. In the rates market, global yields were trading mixed; the US 10-year yield was trading at nan% and the Bund 10-year yield trading at -0.265%. In the energy space, the Brent (front month) is trading down (-1.25%) for the day at $61.73.
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