Asian stocks were mixed in morning trade on Monday. Brexit Deal remained in focus after European Union leaders gave their official endorsement of U.K. Prime Minister Theresa May’s Brexit withdrawal on Sunday and warned British politicians that it was the best deal possible for Britain because there is no “plan b.”. May needs to gain Parliamentary approval for the deal in Westminster to move forward with Brexit and failure could lead the U.K. leaving the EU without a deal, according to reports. With Brexit issues apparently settled in the immediate-term, currency traders are looking to the upcoming G20 meeting in Buenos Aires on Nov. 30, where U.S. President Donald Trump and Chinese President Xi Jinping are expected to discuss contentious trade matters.
In currencies, the dollar held broad gains on Monday as investors sought shelter in the world’s most liquid currency on fears of a slowdown in global economic growth and as U.S.-Sino trade tensions sapped risk appetite. The greenback considered a safe haven currency, advanced as last week’s capitulation in oil prices raised investor concerns that the global economic recovery was losing steam EURUSD traded marginally lower at $1.1335. The single currency lost 0.7 percent versus the greenback last week on weak economic data out of the common area. The ongoing tussle between Rome and Brussels over Italy’s free-spending budget, which breaks the European Commission’s fiscal rules, has also put the euro under pressure. On the monetary policy front, ECB President Draghi is scheduled to speak this afternoon, with ECB members Praet, Coeure and Nowotny also on the docket, with Draghi of greater influence, any dovish chatter a negative for the EUR.
GBPUSD declined 0.5% trading at 1.2800 as European Union leaders sealed a Brexit pact on Sunday calling it the “best possible” deal that Britain could have achieved. On the monetary policy front, BoE governor Carney is scheduled to speak late in the day, with the Brexit deal and the economic outlook possible topics of discussion.
In commodity markets, Oil prices rebounded on Monday in Asia after slumping 8% last Friday amid concerns that excess supply and the weakening demand side pressures could create a glut next year. Ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet on Dec. 6 in Vienna to decide on production policy for the next six months’ officials have been making increasingly frequent public statements that the cartel and its partners would start withholding crude in 2019 to tighten supply and prop up prices.
U.S. (WTI) crude oil slumped by more than 1 percent, to $50.92a barrel, after coming within 5 cents of an October 2017 low reached earlier in the week. Brent crude oil futures hit their lowest since December 2017 at $59.92 per barrel.