Sterling strength holds as Tory majority seems likely

29th November 2019 Market Update

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🇬🇧 GBP –  Although sterling was buoyed from the MRP poll released on Wednesday evening, it edged off marginally yesterday as the poll was digested by the market. Furthermore, the Labour Party have failed to retake the initiative following on from Jeremy Corbyn’s disastrous interview with Andrew Neil, where he refused to apologise following the anti-Semitism scandal within the Labour Party. He also struggled under Andrew Neil’s forensic scrutiny. As things stand, the Conservatives appear to be on course for a majority.

With regards to data, only nationwide HPI was released from the UK yesterday, however it had no impact on sterling. Today mortgage approvals are being released, however they are unlikely to have an impact.

Corbyn before this has seemingly made steady gains throughout the last few days which has been shown on other opinion polls but needs a huge push over the next two weeks to defy odds and stop the conservatives gaining a very likely majority.

All eyes will now be on the first TV debate which is taking place tonight at 7pm

🇪🇺 EUR – German prelim CPI came out below expectations at -0.8%, once again placing the German economy under further scrutiny. Furthermore, OECD data showed that exports and imports had fallen across major European economies, reiterating concerns about the current economic health of the eurozone. This morning French CPI came out above expectations this morning, with a low reading of 0.1%. At 10am flash CPI for the eurozone is being released. If the figure does not match up to market expectations further questions will be asked of the eurozone.

🇺🇸 USD –  Yesterday was Thanksgiving, so no dollar payments were made. As it was a US bank holiday, no data of note was released. Today no data of significance is being released.

 

Summary:

GBP: Despite a lack of significant data, sterling remains strong following recent political developments.
EUR: German CPI falls further, raising further concerns about the eurozone.
USD: Due to it being Thanksgiving, no data was released.


 

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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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