us federal reserve

Pound at six-week high against the US dollar

23rd November 2017 Market Update

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🇬🇧 GBP – Yesterday’s budget did little to shift the pound with market focus still on the ongoing Brexit negotiations and monetary policy rather than fiscal policy.
On the data front public sector borrowing rose £7.46bn but this also had little impact on the pound.

This morning we have the release of 3rd quarter growth figures expected to remain at 0.4% thus no major moves are expected on the pound unless the figure diverges from this expected figure.

🇪🇺 EUR – No data out of the eurozone yesterday and today’s focus will fall in the morning with EU service sector forecast to expand and the bloc’s manufacturing sector forecast to shrink marginally.

🇺🇸 USD – The dollar continued its losing streak as US durable goods orders fell very short of expectations. Even the fairly positive economic outlook by the Fed last night failed to support the currency with both the pound and euro enjoying multi week highs against the greenback.

On account of Thanksgiving being today, no data or news expected out of the US.

 

Key Announcements

🇬🇧 GBP
09:30am: Q3 GDP – Expected to remain at 0.4%

🇪🇺 EUR
09:00am: Markit Manufacturing – Expected to drop to 58.3
09:00am: Markit Services – Expected to rise to 55.1

 

Summary: The key move yesterday saw the US dollar weaken across the board with the pound to US dollar rate now testing the highs last seen at the start of October.

 

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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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