Early yesterday, Sterling was flat at $1.3115, nursing losses after it skidded in the previous session against a backdrop of political turmoil as British lawmakers this week debate the UK government’s plans for leaving the European Union. The Brexit bill was debated yesterday and will be as well today, with 40 of Prime Minister May’s Conservative lawmakers prepared to support a no-confidence motion against her.
Since Monday, the Canadian Dollar pared recent gains against the US Dollar, as investors turned their attention to the resumption of NAFTA renegotiations due to be held between November 17 and 21 in Mexico City. The Bank of Canada is worried about trade uncertainties as it left its benchmark interest rate unchanged after hiking in July and September 2017. Canada’s October inflation report, due on Friday, could reinforce the Central Bank’s more “cautious tone.”
Meanwhile, the Australian Dollar rose to $0.7638 and managed to shrug off downbeat Chinese economic data after the latest survey of businesses from NAB showed the best conditions in two decades, with sales and profits surging in October 2017. The Aussie is sensitive to Chinese data since China is Australia’s major trade partner. China’s retail sales rose 10% on the year in October 2017, while industrial output grew 6.2%, both missing expectations as the government extended a crackdown on debt risks and factory pollution.