Corbyn performs better than expected – Sterling drops

20th November 2019 Market Update

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🇬🇧 GBP –  The pound traded relatively flat yesterday but proceeded to drop around 0.3% against both the other majors this morning. Johnson and Corbyn faced off last night on a televised ITV debate in which Corbyn only narrowly came out behind Johnson, receiving 49% in a YouGov vote judging both of their performances. It was widely expected that Johnson would overwhelm Corbyn, but the latter seemingly holding his own was interpreted as negative for sterling.

🇪🇺 EUR – It is likely to be another quiet day for the euro today as it was yesterday, the single currencies movement has been dictated by the other majors as of late. An EU spokesman made a statement this morning saying that the Brexit negotiations to come will be much more challenging compared to what we’ve seen up to now, and they haven’t even scratched the surface on how they will begin to safeguard a £65 million trading relationship between the EU and the UK.

🇺🇸 USD –  CNBC reported that the Chinese government is pessimistic about agreeing to a trade deal by the end of the month as it was first expected, which seemingly weighed on the greenback. US Housing starts figures were at a 12-year high, and US building permits month on month came in positive but could not help the recently lacklustre dollar.
FOMC Meetings minutes will be released this evening over in the States following Powell’s testimony last week which fell in line with recent economic data and indicators.

 

Summary:

GBP: Sterling drops following TV debate
EUR: Subdued trading on the euro still
USD: China pessimistic about trade deal with US


 

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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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