British Prime Minister Rejects Calls to Delay Brexit - APAC Update

FX, global, economy, money transfer, Australia, New Zealand, Xe, morning update, brexit

Xe Corporate APAC

January 21, 2019 2 min read

This morning British Prime Minister Theresa May rejected calls to delay the UK’s departure from the European Union, and said her Plan B is to have Parliament approve her Brexit agreement after securing changes to a contentious Irish border measure.

May said she had “heeded lawmakers’ concerns over the Irish backstop,” and said she will be “talking further this week to colleagues … to consider how we might meet our obligations to the people of Northern Ireland and Ireland in a way that can command the greatest possible support in the House.”

Lawmakers are due to vote on May’s Plan B and any possible amendments on the 29thJanuary. Our Brexit Barometer readings remain mired in the neutral region until at least that time.

The XE Brexit Barometer
It’s been a subdued start to the trading week with the US enjoying a long weekend however the NZD remains under pressure ahead of tomorrow morning’s inflation report.

**NZD**USD opened at 0.6728 (midmarket rate) ****this morning.

There was little reaction to yesterday afternoon’s China data with Q4 growth hitting 6.4% y/y (in line with expectations). The rate of growth was marginally slower than the 6.5% expansion recorded in Q3 and puts full-year growth for 2018 at 6.6%, the slowest annual pace of expansion since 1990.

On a more positive note, China’s industrial production and retail sales reports for the month of December exceeded expectations with Industrial production increasing by 5.7% y/y (exp +5.3%) and retail sales rising by 8.2% y/y (exp +8.1%).

In other markets,

**Global equity markets are mixed, **Dow Closed, S&P 500 Closed, FTSE +0.03, DAX -0.62%, CAC -0.17%, Nikkei +0.26%, Shanghai +0.56%.

**Gold prices **are unchanged trading at  $1,280 an ounce.** WTI Crude Oil prices **are have inched higher, up 0.4% trading at $54.23 a barrel.

Midmarket Rates

NZD USD     0.6728    -0.3%

NZD EUR     0.5919    -0.4%

NZD GBP     0.5218    -0.5%

NZD JPY      73.75      -0.4%

NZD AUD    0.94        -0.1%

NZD CAD    0.8945    -0.1%

GBP NZD    1.9164       0.5%

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