1. UK and EU agree on all except one new Brexit treaty
2. Reserve Bank of Australia may pause in the cycle of lowering interest rates
3. China's GDP growth may slow to 6.1%
The UK and the EU have virtually agreed on all but one of the clauses of the future Brexit agreement. Boris Johnson refused to sign a clause that the EU customs regime will apply to Northern Ireland, fearing that the Youth Democratic Party will not support this bill when voting in parliament. It is expected that the final draft of the agreement will be submitted today in the morning, a few hours before the start of the EU summit. If the agreement is signed, the House of Commons of Great Britain will hold a meeting on Saturday to consider the agreement on Brexit. By October 31, the bill should be approved by both houses of parliament.
According to data released today, the unemployment rate in Australia fell from 5.3% to 5.2%, which is a very positive signal for the Reserve Bank of Australia. The regulator may hold off with the next interest rate cut at least until the beginning of next year. In response to this news, the Australian dollar strengthened against the US dollar by 0.4%. A decrease in the unemployment rate was facilitated by a strong increase in the number of full-time jobs by 26.2 thousand.
According to a survey conducted by The Wall Street Journal, most experts expect a slowdown in China's GDP growth in the 3rd quarter from 6.2% to 6.1%. Economists believe that this year, due to the active use of incentive measures, China will achieve growth targets. But next year, the country's economy will face more serious problems amid a slowdown in global economic growth. Official Q3 GDP data will be released tomorrow.
News worth paying attention to today:
08:30 GMT. United Kingdom: Retail Sales Report
12:30 GMT. USA: Construction Sector Report
12:30 GMT. USA: Philadelphia Fed Indices of Industrial Activity and Employment
15:00 GMT. US: US Department of Energy Weekly Report