Chancellor moves to calm fears of hard Brexit

Currencies Direct October 20th 2016 - < 1 minute read

Chancellor Philip Hammond has moved to calm fears of a ‘hard Brexit’, after he was put under the spotlight by the Treasury Select Committee. Uncertainty has stuck with the word Brexit and a number of issues are yet to be resolved before triggering Article 50, but Mr Hammond was keen to stress that he wants a deal where European companies can deal in and out of London easily. He was also passionate about making sure the health of the London financial services were at the forefront of negotiations to leave the EU.
Unemployment rate stands at 4.9%
The Unemployment Rate in the UK stood at 4.9% again as official figures revealed no panic from Brexit… yet. Investors have been keen to state they see a job and wage stumble in the coming months. Even though approx. 10,000 people were added to the unemployed list, over 100,000 jobs were added back into the market, keeping the rate of unemployment below 5%.
China showing positive signs of growth
China is showing positive signs of growth after figures of 6.7% were released yesterday, in line with previous quarter’s expectations. Recently, there has been a concern with the Chinese economy, as it has shown signs of weakness with regards to a global slow down. It has a huge debt pool which cannot be maintained by simple Quantitative Easing, as debt is growing much faster than GDP growth.
In other news, Aussie unemployment rate came in better than expected this morning, showing a figure of 5.6% from 5.7%. We also have US Initial Jobless claims, Existing Home Sales and US Leading Indicators for viewing this afternoon.

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