Boris to visit the Queen

6th November 2019 Market Update

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🇬🇧 GBP –  Sterling finished down for the day yesterday against USD and some other major currency pairs. The Conservative party general election is due to start after Boris Johnson’s visit to Buckingham palace today.

The Prime Minister has compared Jeremy Corbyn to Stalin for his hatred towards wealthy people after the opposition leader labelled the PM’s Brexit plan “Thatcherism on steroids”. Corbyn went onto say that Johnson is trying to hijack Brexit “to sell out our NHS and working people”. More negative press for the Conservative party included Jacob Rees-Mogg being forced to apologise for stating those who died could have survived the 2017 Grenfell Tower fire if they showed “common sense”.

Michael Barnier said negotiations with the UK will be difficult regarding trade and the UK cannot expect no tariffs and no quotas to be enough.

UK data yesterday included the Services PMI figure released at 50, back into expansion territory after last month’s reading of 49.5, and above the 49.7 forecasted figure. The UK services sector is the biggest contributor to GDP in the nation, however, this had minimal impact on sterling.

🇪🇺 EUR – The Euro weakened yesterday with GBP/EUR accelerating to its highest level in over 2 weeks and EUR/USD recording its worst daily decline since late September dropping to its lowest level in 3 weeks. The Euro made a small recovery this morning after German Factor Orders for September beat expectations at 1.3.

At 9am this morning EU services PMI for October is expected to have the same reading as last month’s 51.8. At 10am EU retail sales for September is released, the annual figure is expected at 2.5% and the monthly figure at 0.1%.

🇺🇸 USD –  The Dollar index strengthened yesterday following positive news on US – China trade deal. There were reports the US could remove tariffs on Chinese imports. The trade wars have hampered figures with the US trade deficit at a 5-month low, the September figure was released at -52.5 billion USD yesterday.

ISM Non-Manufacturing PMI for October was released at 54.7, beating the expected figure of 53.5. US Services PMI for October fell to 50.6 beneath the 51 forecasted figure.

Today 2 FED members are speaking, Evans at 1pm and Williams at 2.30pm. There are also preliminary figures for both Nonfarm Productivity and Unit Labor costs.

 

Summary:

GBP: Tories begin election campaign

EUR: Services PMI’s expected

USD: US Services beat expectations


 

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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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