Foreign Exchange Daily Market Update 05/01/2018

Fri, January 05, 2018

U.K. car sales fall the most since June’s Brexit referendum.

U.K. car sales fell by its biggest annual slide since the global recession, truncated by Brexit’s impact on buyer’s confidence and persistent scepticism over the emissions performance of diesel cars.

Preliminary figures indicate 2017 sales fell 5.6% from the previous year to 2.54 million vehicles, the steepest drop since 2009. Demand for diesel cars tumbled 17%, with a swing back to petrol models prompting the first yearly increase in carbon emissions since records began in 1997.

The fall in sales from record levels in the past two years comes as confusion over the outcome of Brexit negotiations weighs on consumer, and the fall in the pound crimps the British consumer spending power. The slide is set to continue next year, with expected sales to dip between 5% to 7%.

There is still apprehension over the rigged emissions-testing of diesel cars from Volkswagen and other car-makers is also discouraging consumers from purchasing new cars, while many have switched back to petrol, a trend that has reversed a 19-year run.

Sterling was little unchanged trading at 1.352 against the dollar this morning. It slipped slightly against the Euro to 1.122.

Data to look out today.   

10:00 EUR Euro- zone PMI

13:30 USD Non-Farm Payroll

13:30 USD Unemployment rate for December

15:00 USD Non-Manufacturing   

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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