GBPUSD Near 6 Month High on Dollar Sell Off

3rd December 2019 Market Update

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?? GBP -  The pound lost around half a percent against the euro yesterday despite UK Manufacturing exceeding expectations. From a political standpoint several polls suggested that the gap had tightened between the UK’s two major parties in the lead up to December 12th election.

Construction PMI is set to be released from the UK this morning, this usually has a limited impact on the market.

?? EUR - Cable traded higher throughout the day yesterday, partly down to USD weakness, and has continued to edge higher since the start of the trading session this morning. Manufacturing data came in below expectations for the fourth successive month – reading 48.1, as opposed to the expected figure of 48.3. President Trump once again made the headlines and proposed 100% tariffs on French goods including French Cheese, handbags and lipstick.

There are no major data releases from the US today, therefore all eyes will likely be on any US/China trade war advancements, as we reach the date it was initially expected that the first stage agreement would be signed by both parties.

?? USD -  EUR/USD traded nearly a cent higher yesterday mainly down to USD weakness, as the euro remains largely in the background, mainly being impacted by the other majors.

PPI will be released this morning from the Eurozone, we may see a degree of euro weakness if the figure drops below parity.

Summary:

GBP: Sterling creeps higher
EUR: Euro climbs versus Dollar
USD: Manufacturing figures disappoint pressurising Dollar

 

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