Pound Sterling

Brexit and Vaccine Developments to Dominate Markets This Week

Pound News: Sterling Jittery ahead of Key Week for Brexit

The Pound slipped against major currencies today as markets became anxious ahead of a key week for UK-EU Brexit negotiations.

Markets are fairly optimistic on Brexit and coronavirus vaccine hopes, but uncertainty is weighing on the Pound today despite speculation that UK and EU officials could present some kind of Brexit deal this week.

Brexit speculation and developments will remain in focus for Sterling tomorrow, amid a lack of notable UK economic data.

Euro News: Euro Supported by Coronavirus Vaccine Hopes

The Euro edged higher against its rivals today despite worryingly high coronavirus cases throughout Europe as Austria goes into a national lockdown.

However, the single currency has benefitted from hopes that a coronavirus vaccine could cause a rebound in economic activity next year, and its negative correlation with a weak US Dollar.

Aside from rival strength, comments from European Central Bank (ECB) officials could drive Euro movement in the coming sessions.

US Dollar News: Safe-Haven Demand Limited on Vaccine Hopes

The US Dollar weakened today as investors sold safe haven assets as a new wave of optimism swept equity markets with more positive news of coronavirus vaccine.

Following on from Pfizer’s announcement of successful trials, Moderna revealed its vaccine showed almost 95% efficacy and would be much easier logistically to roll out, which boosted market risk appetite.

One of this week’s most influential datasets will be tomorrow’s US retail sales results from October, giving investors insight into how the US economy is performing amid the coronavirus pandemic.

Canadian Dollar News: Strengthening Oil Prices Keep CAD Climbing

The oil-correlated Canadian Dollar was one of today’s more appealing major currencies, climbing back from recent losses as prices of oil continue to recover.

Reported success in coronavirus vaccine trials led by Moderna further boosted signs of a light at the end of the coronavirus tunnel, leading to higher oil prices and an even stronger CAD today.

Shifts in oil price strength will remain key to the Canadian Dollar’s movement, which will likely overshadow tomorrow’s Canadian wholesale sales report.

Australian Dollar News: Coronavirus Vaccine News Boosts Risk-Sensitive AUD

US biotech company Moderna reported today that its coronavirus vaccine trials had been highly effective in the latest trials, boosting the risk-sensitive ‘Aussie’.

Tuesday’s Asian session will see the publication of the Reserve Bank of Australia’s (RBA) latest meeting minutes. If the minutes are more dovish than expected it could weigh on the ‘Aussie’s current resilience.

Upcoming Data

Tuesday, 17th November

00:30    RBA Meeting Minutes

13:15    Canadian Housing Starts

13:30    US Retail Sales

14:15    US Industrial and Manufacturing Production