Published: 5 Nov at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, France, Germany,
Pound Sterling (GBP)
While market sentiment improved slightly today, the Poundâ€™s rebound attempt has been limited. The Bank of England (BoE) announced fresh quantitative easing (QE) and notable downgrades to its UK forecasts, amid fears that the coronavirus pandemic will mean a rough Q4 for Britainâ€™s economy.
All of this weekâ€™s notable UK news has passed. As a result, the Poundâ€™s focus will remain on developments in the 2020 US Presidential Election through the end of the week.
The Euro has seen mixed movement this week. Uncertainty over the US election combined with Eurozone coronavirus jitters is keeping it volatile, but it has been able to gain against weakness in the Pound and US Dollar regardless.
German industrial production and French trade stats are due tomorrow. The Euro is more likely to be driven by movement in rivals though, as the focus remains on the US 2020 Presidential Election.
US Dollar (USD)
Markets have become a little more confident today that the US 2020 Presidential Election will end with a clear result. This is causing safe haven demand to calm, and as a result the US Dollar is tumbling today.
Of course, the US election remains at the centre of the US Dollarâ€™s movement. Still, this eveningâ€™s Federal Reserve policy decision will be closely watched as well.
Australian Dollar (AUD)
The Australian Dollar continues to push higher this week, despite market risk-aversion amid US political uncertainty. This is due to Australia
â€™s more optimistic coronavirus outlook, as well as hopes for there to eventually be a clear US election result.
Australian services PMI data is due tomorrow. The Australian Dollar remains sensitive to shifts in risk-sentiment though, a surprise tightening in the US election could knock the â€˜Aussieâ€™ much lower.
Hopes and bets that Joe Biden will win the US 2020 Presidential Election are keeping the risk and trade-correlated New Zealand Dollar buoyant today.
New Zealand business inflation expectations data for Q4 is due tomorrow. Possible shifts in risk-sentiment on US election results are likely to keep the â€˜Kiwiâ€™ volatile for now though.
Canadian Dollar (CAD)
Due to the Canadian Dollarâ€™s correlation with the US Dollar, as well as mixed oil prices this week, the Canadian Dollarâ€™s movement has been mixed. Still, it has been able to gain against the Pound due to the Poundâ€™s weakness on risk-aversion.
Major Canadian job market data from October is due tomorrow, and could cause some late-week Canadian Dollar movement. Of course, results of the US election will remain a key factor as well.
As of Thursday, 5th November 2020, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1119, GBP USD exchange rate was 1.3139, GBP AUD exchange rate was 1.8096, GBP NZD exchange rate was 1.9426, and GBP CAD exchange rate was 1.7191.