Sterling remains buoyant as Tories extend lead

19th November 2019 Market Update

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🇬🇧 GBP –  The pound had taken a short term swing as we gain around 0.4% due to the Conservatives lead increasing over the labour party by 10 to 17 percentage points, however this was short lived as Boris pulled back on his remarks of cutting corporation tax for businesses. We don’t have any data of note for the UK to report on, therefore tonight’s face off between Corbyn and Johnson could cause more movement.

🇪🇺 EUR – The Eurozone has once again taken a back seat and doesn’t have any significant data to report on until Thursday and Friday. The ECB’s Vice President Guindos opened the 22nd Euro Finance week in Frankfurt yesterday with his main talking points being the challenges up-and-coming for the Eurozone financial sector. This was largely overlooked until they publish their Financial Stability Report tomorrow which will outline the health of the EEA’s financial institution.

🇺🇸 USD –  The dollar struggled early this morning after receding hopes for a preliminary trade deal between the US and China hurt the demand for the buck. Trump has been very optimistic regarding the completion of phase one, however China has released pessimistic views about agreeing the deal, meaning investors looked to place their investments elsewhere. The only data of note from the US this morning are building permits, yet I believe all eyes will be firmly glued to Wednesdays FOMC minutes.

 

Summary:

GBP: Boris and Corbyn face off tonight
EUR: Euro gains versus US dollar to two week high
USD: Trades hopes between China and US recede


 

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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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