Pressure on pound remains as inflation drops
Published by
Darren Kilner
on
19th December 2019 Market Update
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?? GBP - Yesterday sterling continued its losing streak as it prepares itself for Friday's vote. Again, it comes down to that worry of the no-deal Brexit once again showing its face. After all its continued strength the pound is on course for its biggest two day fall in nearly two years. JP Morgan has released an statement showing an uncomfortably high chance of the UK leaving with a no deal. They forecast a 25% chance of a no deal Brexit.
CPI Figures came in yesterday below UK target at 1.5%, this made no difference within the market. Following on from inflation, today we have an interest rate vote from the BOE to see if they will change interest rates from 0.75%. The previous result showed two MPC member voting to cut interest rates, therefore the pound could be sensitive to anymore vote in favour of a decrease. The Monetary Policy Summary is worth keeping an eye on at 1pm.
?? EUR - From the Eurozone President Lagarde spoke yesterday which was titled ‘another non-event’, however central bankers have already started scrutinising the new ECB President plans after restarting its €2.6 trillion bond purchase program. There is no news from the Eurozone today.
?? USD - The US house of representatives began debating articles of impeachment against Donald Trump yesterday which is has made him only the third president to be impeached. The votes on two articles of impeachment have resulted in a trial hearing in January, however as the Senate is under Republican control this makes it unlikely Trump will be removed from office. The dollar moved about 20 pips off the back of this news. The Philly Fed Manufacturing index will be released today at 14:30.
Summary:
GBP: Sterling remains under pressure
USD: Trump impeached
EUR: Lagarde monetary policy scrutinised
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