Currency News Today: Pound to US Dollar Retreats Despite Record Jump in GDP

Pound (GBP) Dips as Another Brexit Deadline Set to be Missed

The Pound to US Dollar and GBP/EUR slipped back from two-month highs in mid-week trade as news that a UK-EU Brexit trade deal will likely miss the 15 November deadline dampened Sterling sentiment.

However, the Pound’s losses were tempered by ongoing optimism over the new coronavirus vaccine, on hopes that as one of the economies hardest hit by the pandemic, a vaccine could disproportionately benefit the UK.

Turning to today’s session, GBP exchange rates are already under pressure following the publication of the UK’s latest GDP release, with a record jump in the third quarter being undermined as it fell short of market expectations.

 

Euro (EUR) Knocked by Coronavirus Concerns

The Euro (EUR) remained on the defensive on Wednesday as Europe’s increasingly bleak coronavirus situation and concerns over the impact on the Eurozone economy put pressure on the single currency.

The latest developments come from Italy, which is expected to join its European neighbours in announcing a nationwide lockdown, amidst an alarming rise in local infections.

However, EUR/GBP has strengthened this morning as Sterling weakened on data and Brexit news.

Looking ahead, the publication of the Eurozone’s latest industrial production figures will be in focus this morning, with another modest expansion in factory orders potentially helping to limit further weakness in EUR exchange rates.

 

US Dollar (USD) Firms amid Ongoing US Political Uncertainty

The US Dollar (USD) edged higher through yesterday’s trading session, with demand for the safe-haven currency strengthening amidst lingering US political uncertainty.

This comes as Donald Trump continues to refute the result of last week’s presidential election, with fears that a drawn-out legal battle could hamper the transition process.

At the same time, the ‘Greenback’ strengthened against Sterling as Brexit news weighed on the Pound to US Dollar exchange rate, as it fell to $1.31.

Coming up today, the focus for USD investors will be on the latest US consumer price index. How will an expected dip in inflation impact the US Dollar?

 

Canadian Dollar (CAD) Steady as Oil Prices Strike a Two-Month High

The Canadian Dollar (CAD) held its ground against some of its stronger peers yesterday, as the commodity-linked ‘Loonie’ was buoyed by the sustained rally in oil prices which carried WTI crude to a two-month high.

 

Australian Dollar (AUD) Undermined by China Tensions                              

The Australian Dollar (AUD) trended lower overnight on Wednesday amidst growing concern over tensions between Australia and China following news that Beijing has suspended all Victorian timber logs imports, after already placing restrictions on a number of other key Australian exports.

 

New Zealand Dollar (NZD) Extends RBNZ Driven Gains

The New Zealand Dollar (NZD) remained on the offensive in overnight trade, with the ‘Kiwi’ continuing to benefit from the Reserve Bank of New Zealand’s (RBNZ) signal that it’s currently done with any monetary easing.

Matthew Andrews

Contact Matthew Andrews


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