Pound (GBP) Rangebound Following von der Leyen Warning
The Pound (GBP) was stuck trading in a narrow range yesterday as markets responded to comments from European Commission President Ursula von der Leyen as she arrived in the UK to speak with Boris Johnson.
Ahead of the meeting, von der Leyen warned it will be ‘impossible’ for the UK and EU to negotiate a comprehensive trade deal by December, the deadline imposed by Johnson through an amendment to his EU withdrawal bill.
Looking ahead, GBP investors will look to the Bank of England’s (BoE) Mark Carney for further impetus today, with the Pound potentially facing some headwinds if the BoE Governor hints at monetary easing from the bank in 2020.
Euro (EUR) Slumps on Disappointing Data
The Euro (EUR) fell back on Wednesday on the back of some disappointing industrial data from Germany.
Germany reported a surprise contraction in factory orders in November, quashing hopes that the country’s long suffering manufacturing sector had bottomed out and was on the road to recovery at the end of 2019.
However the Euro is back on the offensive this morning as the fall in factory orders does not appear to have blunted German industrial production in November, according to data published earlier this morning.
US Dollar (USD) Firms on Easing Middle East Tensions
The US Dollar (USD) trended higher through yesterday’s session as the currency benefited from an apparent easing of tensions between the US and Iran.
Further lifting the ‘Greenback’ was the publication of the latest ADP employment figures, which beat estimates with a reported 202,000 jobs added in December.
In the absence of any notable US data today, USD investors are likely to turn their focus towards Friday’s highly influential non-farm payroll report, with traders hoping for another bumper reading in light of Wednesday’s stellar ADP figures.
Canadian Dollar (CAD) Weakens as Oil Prices Slip
The Canadian Dollar (CAD) edged lower on Wednesday, weakening in line with falling oil prices as Trump’s unusually reserved tweet after the Iranian missile strikes calmed markets.
In focus for CAD investors today will be a speech by Bank of Canada (BoC) Governor Stephen Poloz, could a more dovish outlook for 2020 send the Canadian Dollar lower?
Australian Dollar (AUD) Muted as Wildfires Continue
The Australian Dollar (AUD) traded in a narrow range overnight on Wednesday. While AUD investors were relieved by the easing tensions in the Middle East, the ongoing wildfire crisis capped any upside in the ‘Aussie’.
New Zealand Dollar (NZD) Buoyed by Improved Risk Appetite
The New Zealand Dollar (NZD) rallied from a near two-week low yesterday, with the risk-sensitive currency finding support amid the de-escalation of tensions between the US and Iran.