09-NOV-2018, FRIDAY

In today’s other economic highlights, in the European session, we get Norway’s and the Czech Republic’s CPI rates for October, from the UK the GDP for Q3, Trade balance figure for September, as well as the industrial and manufacturing output growth rates also for September. In the American session we get from the US the Core PPI rates for October, the preliminary Michigan consumer sentiment for November and last week’s Baker Hughes Oil rig count. As for speakers, ECB’s Benoit Coeure, BoE’s Andy Haldane and Fed’s Williams, Harker and Quarles speak.

The Fed kept interest rates steady, as was widely expected yesterday at +2.25% and kept a hawkish tone in the accompanying statement. The bank confirmed its policy of monetary tightening and paved the way for the next rate hike in December. With the Fed reaffirming their stance yesterday, it means that December is very much a closed case for a rate hike. Also, there could be high probabilities following up in similar fashion in 2019. Analysts turned their attention to the divergence of the various bank’s policies with the widening interest rate differentials providing worries. Volatility for the USD is expected to continue and could strengthen further as its main rivals seem rather weak.

PM Teresa May is under pressure to deliver a plan for the Irish border. Eurosceptic ministers fear May’s blueprint risks tying the U.K. into the EU’s customs rules forever. Attorney General Geoffrey Cox is the person who will write the document, and a final view will be made by the Parliament in order to vote on whether to accept or reject it. The Irish border remains in the focus as Britain may have to continue to follow EU regulations regarding competition rules, state aid and environmental regulations. However, pro-Brexit campaigners in May’s party reject these rules and favor Britain to have full control of laws in the pre mentioned regulation.