Pound (GBP) Muted as Politics Remain in Focus
The Pound (GBP) lacked direction on Wednesday as election speculation limited the appeal of the UK currency.
Yesterday saw markets focus on Boris Johnson’s and Jeremy Corbyn’s performance in the first election debate, with Labour thought to have benefitted the most even as it ended in a tie.
In the absence of any notable economic releases we will see UK political developments continue to dictate the pace of Sterling today as investors keep an eye on the latest polling data.
GBP/EUR Exchange Rate Rangebound Following ECB Stability Review
The Pound Euro (GBP/EUR) exchange rate traded in a narrow range on Wednesday as the European Central Bank (ECB) published its Financial Stability Review.
The ECB reaffirmed that risks to the Eurozone remain tilted to the downside, and that its financial system may be exposed to a future shock.
In focus for EUR investors today will be the minutes from the ECB’s October policy meeting.
Markets aren’t expecting many surprises from the release but they could shape expectations for a speech by new ECB President Christine Lagarde on Friday.
GBP/USD Exchange Rate Steady After FOMC Minutes
The Pound to US Dollar (GBP/USD) exchange rate remained mostly flat through yesterday’s session as the minutes from the latest Federal Reserve meeting failed to inspire USD movement.
The minutes reaffirmed that the Fed is done with easing for now, but offered little in the way of guidance for monetary policy in 2020.
On the docket for USD investors today is the Philadelphia manufacturing index. A modest uptick in manufacturing growth could help buoy the US Dollar.
GBP/CAD Exchange Rate Flat as Canadian Inflation Remains Steady
The Pound to Canadian Dollar (GBP/CAD) exchange rate was mostly rangebound on Wednesday as some weakness in oil prices was offset by Canada’s CPI figures revealing headline inflation held at 1.9% in October.
In spite of the robust inflation figures, we could see Bank of Canada (BoC) Governor Stephen Poloz strike a dovish tone when he speaks later today. Will the recent disappointing employment report lead to more explicit rate cut signals from Poloz?
GBP/AUD Exchange Rate Rallies on US-China Trade Uncertainty
The Pound to Australian Dollar (GBP/AUD) exchange rate leapt yesterday evening, with the pairing appreciating by roughly half a cent as the ‘Aussie’ was buffeted by renewed US-China trade uncertainty.
Looking ahead, the ‘Aussie’ may attempt to rebound later tonight if Australia’s latest PMI figures show a marked improvement in service sector growth in November as forecast.
GBP/NZD Exchange Rate Jumps Following Trump’s Comments
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also rallied on Wednesday evening as markets went risk-off after Donald Trump warned that the trade negotiations with China were not ‘at the level’ he wants.