While North American markets were off, rumours were circulating yesterday in the United Kingdom that members of Theresa May’s Conservative Party had allegedly lost confidence in their leader. Obstacles appear to be mushrooming for the Tory prime minister, who is doing what she can to stay the course during Brexit negotiations while her support is crumbling. The pound sterling was the biggest loser in trading yesterday, down against all major currencies.
In the United States, President Donald Trump has breathed some life into hopes for his tax reform plans by hinting that lawmakers could be reaching an agreement. The U.S. dollar strengthened on the news to close the day in the green.
This morning, central bankers are taking part in a conference in Frankfurt. Speeches by Mario Draghi, Janet Yellen, Mark Carney and Haruhiko Kuroda, from the European Central Bank, U.S. Federal Reserve, Bank of England and Bank of Japan, respectively, could trigger a reaction on markets. This week, observers will also be interested in inflation data in the United States on Wednesday morning and in Canada on Friday.
We’ll get a preview at 8:30this morning with the October U.S. Producer Price Index. The fifth round of NAFTA talks will also get underway in Mexico City on Wednesday.
Alexis Masson
Range of the day : 1.2650 – 1.2790