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A Day for Talking

28th November 2017 Market Update

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๐Ÿ‡ฌ๐Ÿ‡ง GBP –ย The pound is languishing at a lowly position versus the euro, but is maintaining recent gains against the US dollar. Yesterday brought little to buoy the currency, though Liam Fox, the Trade Secretary, has stated this morning that the UK may have gone far enough for Brexit talks to progress.

Governor Carney has spoken earlier today, following bank stress test results, but has not said anything to rock the boat. He did state that a disorderly Brexit would result in a lower pound and a weaker economy. Not exactly ground-breaking.

Other than this, it is yet another quiet day for Sterling.

๐Ÿ‡ช๐Ÿ‡บ EUR – There was nothing of note for the eurozone yesterday and today is more of the same. The big news remains the ongoing political uncertainty in Germany, with markets waiting to see if Angela Merkel can maintain the same power that sheโ€™s enjoyed for many years. Any seismic upheaval could see a negative reaction from the euro.

๐Ÿ‡บ๐Ÿ‡ธ USD –ย Again, no data was forthcoming Stateside yesterday. This afternoon sees the first real speech from the Fed Chair Designate Jerome Powell and markets will be keenly listening for any deviation in monetary policy going forward.

Also this afternoon, monthly Consumer Confidence figures are released. These are always a leading indicator of spending, which accounts for a majority of economic activity. The expectation is for a reading that is slightly down on the previous month.

The day is rounded off with yet another speech this evening, this one from Treasury Secretary Mnuchin.

 

Key Announcements

๐Ÿ‡ฌ๐Ÿ‡ง GBP
08:00am: UK Bank Stress Test results
08:00am: Governor Carney speaks

๐Ÿ‡บ๐Ÿ‡ธ USD
15:45pm: US Fed Chair Designate Powell speaks
16:00pm: US Consumer Confidence data
21:45pm: US Treasury Secretary Mnuchin speaks

๐Ÿ‡ณ๐Ÿ‡ฟ NZD
20:00pm: The Royal Bank of New Zealand releases its Financial Stability Report

๐Ÿ‡จ๐Ÿ‡ฆ CAD
TBD: Bank of Canada Governor Poloz speaks

 

Summary: It really was a very quiet Monday, with no economic data to speak of and little market movement. Today is largely a day of speeches and statements and it will be interesting to hear if anyone can summon the wherewithal to go against the status quo. Probably not.

 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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