The pound sterling couldn't hold on to positive momentum and edged lower against the US dollar during London trading on Monday. Brexit talks have been resumed, and there is still hope that a deal can be reached before the end of the year. The recent departure of one of the key advisors to the Prime Minister is considered good news, as many believe Dominic Cummings was inflexible on key issues. For analysts, his departure suggests a newfound willingness on behalf of Downing Street to cooperate with the EU on the main sticking points, namely fishing and competition rules. Some analysts expect to see a deal that could be signed this week, especially as time is running out rapidly.
In London trading as of 11:20 am, the GBP/USD was trading at $1.3193, a loss of 0.0348% and moving off the session trough of $1.31553. The EUR/GBP was higher at 0.8974 pence, a gain of 0.1249%; the pair has ranged from a low of 0.89544 pence to a high of 0.89987 pence.
China Industrial Production Lifts Aussie and Kiwi
In China in the overnight hours, China's National Bureau of Statistics reported that industrial production for the month of October was higher than expected at 6.9% on an annualized basis; analysts had forecast a decline to 6.5% from 6.9%. The Bureau also reported that retail sales came in at 4.3% annualized against a forecast of 5%; a gain, nonetheless, from the previous reading of 3.3%. The readings for the industrial production, at least, was enough to shift sentiment for higher-risk assets. The AUD/USD was higher at $0.7297, a gain of 0.3949%, while the NZD/USD was trading at $0.687, up 0.3476%.