Pound (GBP) Weakens as Brexit Worries Grow
The Pound (GBP) fell against most of its peers on Friday afternoon amid rising Brexit tensions, with the UK warning of retaliation after French authorities detained a British fishing vessel.
The UK also activated a committee in order to discuss the repercussions of triggering Article 16, as government points to the end of November as a deadline for negotiations.
Today’s finalised manufacturing PMI for the UK could cause movement if it surprises investors. Otherwise, Brexit news may be the key driver of GBP.
Euro (EUR) Plummets on USD Strength
The Euro (EUR) slumped on Friday, as a soaring US Dollar (USD) triggered a heavy sell-off in the single currency, due to the negative correlation between the two.
This drop erased the Euro’s gains from Thursday’s European Central Bank (ECB) decision, as well as more modest gains in the morning after the Eurozone CPI overshot forecasts.
Looking ahead, the Euro may struggle this morning after retail sales in Germany unexpectedly contracted in September.
US Dollar (USD) Soars ahead of Fed Meeting
The US Dollar surged on Friday as the North American session got underway, with the movement seemingly caused by an end-of-the-month correction ahead of the Federal Reserve meeting this week.
Traders expect the Fed to announce tapering plans, which boosted the US Dollar on Friday and may support it through this week.
USD investors will also be looking to the ISM manufacturing PMI this afternoon for fresh impetus.
Canadian Dollar (CAD) Slips on Disappointing GDP
The Canadian Dollar (CAD) fell against its stronger rivals at the end of last week as Canadian GDP printed below forecasts and oil prices experienced some volatility.
This afternoon, Canada’s manufacturing PMI could cause some movement, while oil prices will likely continue to influence the commodity-linked ‘Loonie’.
Australian Dollar (AUD) Undermined by Lacklustre Data
The Australian Dollar (AUD) ticked lower in overnight trade after Australia’s Ai Group manufacturing index unexpectedly dropped.
New Zealand Dollar (NZD) Firms amid Improving Market Mood
The New Zealand Dollar (NZD) wavered overnight, edging higher overall, as a slightly more upbeat market mood boosted the risk-sensitive ‘Kiwi’.