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Tue 11 Aug 2020 07:01GMT

Sterling Remains Soft after MP Vote on ?Brexit? is Blocked

Published: 10 Oct at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, Italy, Russia,

Pound Sterling (GBP)
The latest news out of the UK has been negative, with the Pound falling back to opening lows against the Euro, US Dollar and most other major rivals.
This depleted state was initially caused by a ‘flash crash’ on Friday, and has since been worsened by the news that MPs will be unable to vote on ‘Brexit’ terms.
In the latter case, fears have since been widespread about whether a ‘Hard Brexit’ will take place; the news about a lack of vote implies this is still a distinct possibility.
Tomorrow’s early UK economic news will consist of the BRC like-for-like sales figure for September, which is forecast to show movement towards a positive figure on the year.

Euro (EUR)
For the Euro, the day’s trading has been generally poor, owing to the fears re-emerging that Deutsche Bank, Germany’s biggest, could be hit with sizable fines from US authorities, thereby running the risk of the company’s collapse.
Better Euro news today has consisted of the German August trade surplus rising, along with annual Italian industrial production during the same month.
Tomorrow morning will bring both the German and Eurozone ZEW October surveys of economic sentiment, which are respectively forecast to rise notably and fall into a negative range.

US Dollar (USD)
The value of the US Dollar has been high compared to other, more unstable peers today, thanks to an ongoing positive response to the weekend’s debate between Clinton and Trump.
Given that Trump has been associated with a more unstable economic policy if he becomes president, the fact that Clinton emerged from the scuffle polling higher raised confidence in the ‘Buck’ considerably.
The first US data of the week is due tomorrow, in the form of an opening speech from Fed official Charles Evans. Later on, during the afternoon, fellow Fed official Esther George is due to give some comments.

Australian Dollar (AUD)
While other currencies have struggled to rise due to domestic or global concerns, the ‘Aussie’ has been a quiet climber against its rivals today, having advanced against all regular rivals except the more desirable Canadian Dollar.
Economic analysts have actually been fairly negative about the prospects of Australia’s economy of late, though this hasn’t stopped the Australian Dollar from remaining in demand.
Recent positive domestic data has consisted of the September foreign reserves result, which has climbed from 63bn to 65.8bn.
The major Australian news to watch out for tomorrow morning will be the NAB business confidence figure for September, which is currently forecast to reprint at 6 points on the month.

New Zealand Dollar (NZD)
Unlike its Australian neighbour, the New Zealand Dollar has dived in value during trading today, on account of a recent drop in milk prices as well as the recent rise in appeal of the US Dollar.
As with the UK, the present week is expected to be a quiet one when it comes to New Zealand domestic data; the only major expected announcement will be Wednesday night’s Business NZ PMI for September, which has a rise from 55.1 to 55.6 forecast.

Canadian Dollar (CAD)
The Canadian Dollar has jumped against its regular rivals today, thanks to recent upward spikes in the cost of crude oil and gold; in the former case, the cost of crude has risen on comments from Russian President Vladimir Putin.
While not a member of oil producers OPEC, Russia has nonetheless expressed desires to negotiate a capping of oil production, so that the cost of the commodity is raised due to reduced supply.
Today has been Thanksgiving in Canada, therefore the first Canadian data of the week will be tomorrow afternoon’s September housing starts figure, which has a dip from 182.7k to 179k forecast.

As of Monday, 10th October 2016, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1096, GBP USD exchange rate was 1.2362, GBP AUD exchange rate was 1.6257, GBP NZD exchange rate was 1.732, GBP CAD exchange rate was 1.6281, and GBP RUB exchange rate was 76.6702.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

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