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Pound (GBP) Steady on General Election Uncertainty

Published: 29 Oct at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, France,

Pound Sterling (GBP)

The Pound (GBP) held steady against many of its competitors today after Labour leader Jeremy Corbyn confirmed that he would back Prime Minister Boris Johnson’s general election bill.

However, after the Government was defeated on Creasy’s amendment, UK markets are remaining cautious as Boris Johnson could pull the general election bill if the opposition forwards amendments allowing EU nationals to vote on December 12.

US Dollar (USD)

The US Dollar (USD) remained subdued today ahead of tomorrow’s expected US Federal Reserve rate cut, which is expected to ease from 2% to 1.75% amid growing concerns for the US economy.

Today saw the release of September’s US pending home sales figure which beat forecasts and rose from 1.4% to 1.5%, although this failed to provide much uplift for the ‘Greenback’.

Euro (EUR)

The Euro (EUR) failed to gain on the Pound (GBP) today despite this morning’s release of October’s French consumer confidence figure, which beat forecasts and held at a 20-month peak of 104.

Analysts at Reuters said:

‘Fears of unemployment have strongly receded in recent months which – together with the fiscal boost - helped consumers to restore faith in their future financial situation. Since the summer, they have been more confident in their future ability to save.’

Meanwhile, Euro traders will be looking ahead to this evening’s speech by Dr Jens Weidmann, the President of the Deutsche Bundesbank. Any dovish comments about the Eurozone economy could see the Euro weaken against its competitors.

Australian Dollar (AUD)

The Australian Dollar (AUD) held steady today after the Governor of the Reserve Bank of Australia, Philip Lowe, said that further negative interest rates were unlikely, thus providing some relief to ‘Aussie’ traders.

US-China trade uncertainty has also weighed on market appetite for the risk-sensitive ‘Aussie’, after China accused the US of ‘bullying’ after US President Donald Trump agreed to crack down on Chinese telecommunications technology over security concerns.

New Zealand Dollar (NZD)

The New Zealand Dollar has also remained steady against the Pound today with concerns that US-China trade relations could sour following strains over Chinese telecommunications technology.

Canadian Dollar (CAD)

The Canadian Dollar (CAD) rose today despite falling oil prices due to pressured expectations over a rise of US crude oil inventories.

However, ‘Loonie’ traders are feeling optimistic with the Bank of Canada (BOC) expected to keep interest rates at 1.75% tomorrow.

As of Tuesday, 29th October 2019, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1577, GBP USD exchange rate was 1.2867, GBP AUD exchange rate was 1.8761, GBP NZD exchange rate was 2.025, GBP CAD exchange rate was 1.6843, and GBP CNY exchange rate was 9.0912.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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