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Currency markets subdued

8th August 2019 Market Update

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🇬🇧 GBP –  Market moves on the pound were very subdued yesterday in the absence of any significant data and Brexit news.

Risks still persist of a no-deal in Brexit in October and whilst investors suggest that PM Boris Johnson could face a no-confidence vote, the fact remains that there is no guarantee at present that MP’s could force a general election before the end of October.

No significant data out today from the UK, thus moves on the pound continue to remain range bound as market sentiment stabilises for now.

🇪🇺 EUR – The euro eased off its 22nd July highs as German industrial production fell very shy of expectations coming in at -5.2% versus an expected -1.8%; adding to the ongoing concerns about the German economy.

No data out today.

🇺🇸 USD –  Escalating trade tensions between the US and China remains the significant risk factor for the US dollar, with the follow on from this being that the Fed may need to cut interest rates further in September.

However, St Louis Fed President, James Bullard, attempted to curb any further fears of a rate cut in the US by commenting “I don’t think it is realistic for the Fed to respond to each threat and counter threat in a tit-for-tat trade war.”

Only data today will be the weekly jobless claims figures

 

Summary:

GBP: Pound remained rangebound yesterday
EUR: German industrial production falls
USD: Bullard attempts to curb rate cut fears


 

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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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