As reported earlier, today’s economic data releases from China and Germany helped to boost risk appetite and undermined the euro and Aussie.
The U.S. government partially closed at midnight on Friday. But the UK deals with a much more serious crisis. Potentially also for gold.
The greenback’s sell-off paused early Tuesday after touching its weakest level since January 2015.
The British pound/Japnese yen (GBP/JPY) currency pair looks like it is about to stage a breakout as it hovers near the top of its recent range.
The pound has managed to put ongoing Brexit and political uncertainties behind it as it finally responded to the domestic economic news.
Despite news that the UK inflation climbed its highest rate since March 2012, the GBP/USD initially dropped to its lowest level since 28th November.
The forties is down till Christmas, in the old North Sea, it will slow that oil flows into Scotland’s refineries. Christmas will find price hikes, all the way downstream. The forties is down until Christmas and the oil price will scream.
The U.S. dollar appreciated during the week as the tax reform inched closer to reality. Fundamental data in the U.S. was positive for the currency but hourly wages again disappointed by coming below expectations. Given the importance of inflation indicators inside the Fed stagnant wages could make it hard on the U.S. central bank to keep raising rates in 2018.
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After a hiccup at the start of the week, the UK government has finally struck a deal with the EU to move Brexit talks on to the next phase.