The pound steadied on Monday, with any optimism around progress in Brexit talks being overshadowed by a dollar boosted by speculation about a more hawkish chair of the U.S. Federal Reserve.
British Prime Minister Theresa May said on Monday she was “ambitious and positive” about the country’s future and its negotiations to leave the European Union, describing the talks as being conducted in a “constructive spirit”.
Sterling had recovered from an 11-day low against the dollar on Friday on tentative signs of progress in talks over Britain’s departure from the European Union, after EU leaders said they would begin preparations to move into the second phase of discussions in December.
Figures on British factory orders released on Monday showed growth slowed to its weakest in almost a year this month, but that had no perceptible impact on sterling.
May said on Friday that EU leaders need not be concerned about the current budget plans, that Britain would honour the commitments it had already made as a member of the bloc and that she was optimistic about winning a good Brexit deal.
U.S. President Donald Trump will urge Chinese President Xi Jinping to fully implement U.N. Security Council resolutions against North Korea and take other steps to pressure Pyongyang when he travels to China next month, a senior White House official said on Monday. Isolating North Korea further is a key goal for Trump on what will be his longest foreign trip to date. His Nov. 3-14 trip will include visits to Japan, South Korea, China, Vietnam and the Philippines. China, Pyongyang’s sole major ally, has said it will strictly enforce U.N. Security Council sanctions banning imports of coal, textiles and seafood, while cutting off oil shipments to the North. China accounts for more than 90 percent of trade with the isolated country.
However, senior White House official who briefed reporters ahead of the trip said China needs to do more to comply with two U.N. Security Council resolutions that were approved unanimously, including with China’s support.
Though China has been angered by North Korea’s repeated nuclear and missile tests and demanded they stop, Beijing also sees the United States and South Korea sharing responsibility for rising tensions because of military drills they carry out in the region. Trump has frequently asked China to help rein in North Korean leader Kim Jong Un but this strategy has so far failed to stop Pyongyang conducting nuclear bomb tests at an underground facility and firing ballistic missile tests into the Pacific Ocean over Japan.
09.00 – EUR – Flash Manufacturing PMI; Forecast at 57.9 against previous of 58.1
09.00 – EUR – Flash Services PMI; Forecast at 55.7 against previous of 55.8
14.45 – USD – Flash Manufacturing PMI; Forecast at 53.3 against previous of 53.1
14.45 – USD – Flash Services PMI; Forecast at 55.2 against previous of 55.3