Following last week’s turmoil in the UK political scene, market participants are likely to keep their gaze locked on the Brexit front. On Sunday, an extraordinary EU summit is set to take place, but ahead of that, focus is likely to be on whether a no-confidence vote in PM May will be triggered. On Wednesday, the EU Commission will announce its decision on Italy’s resubmitted budget plan, with another rejection being the most likely outcome. The RBA and ECB minutes, as well as Japan’s and Canada’s CPIs for October are also due to be released.
Monday appears to be a relatively light day with no major economic releases on the economic calendar.
On Tuesday, during the Asian morning, the RBA releases the minutes of its latest meeting. At that meeting the Bank kept interest rates unchanged once again and proceeded with some positive changes in the accompanying statement. That said, the Aussie strengthened only 10 pips at the time of the release, a move suggesting that the changes were not significant enough for market participants to bring forth their expectations with regards to the RBA’s future plans. According to the Bank’s latest quarterly Statement on Monetary Policy, financial market prices imply that the cash rate is expected to increase in 2020. So, having all these in mind, we don’t expect the minutes to result in any fireworks.
During the European morning, in the UK, BoE Governor Mark Carney and several other MPC members will testify on the November Inflation Report before the Parliament’s Treasury Committee. At the conference following the...
Read the full financial markets weekly outlook on JFD Research.