Brexit, UK Election, and US Impeachment Fears Drive Jittery Trade

Pound News: Sterling Weakens as Election Uncertainties Return

The Pound fell yesterday on fresh uncertainties about the future of UK politics as UK Parliament reconvened following its unlawful prorogation. The government has once again indicated it will try to force a general election, and concerns persist that a no-deal Brexit could still be forced as well.

Developments in politics and Brexit will continue to drive Sterling today, with markets expecting weeks more Brexit chaos as the final month before Brexit day approaches.

Euro News: Eurozone Growth Concerns Weigh on EUR

Investors were hesitant to buy the Euro yesterday amid a lack of notable support for the shared currency. Stronger than expected French consumer confidence data was not enough to offset persistent German recession fears.

Euro movement is likely to remain limited until the publication of tomorrow’s Eurozone confidence data.

US Dollar News: USD Advances despite Impeachment Process

On Tuesday night, the US Democratic Party announced that it would begin a formal impeachment inquiry into President Donald Trump over a US-Ukraine whistle-blower controversy. However, analysts doubt the process will remove Trump from office, so the US Dollar spent yesterday recovering from Tuesday night losses.

This week’s most notable dataset will be published today. If US growth falls short of forecasts, Federal Reserve rate cut bets could rise and US recession speculation could return as well, which would weaken USD.

Canadian Dollar News: Falling Oil Prices Limit CAD Demand

The Pound to Canadian Dollar exchange rate slumped yesterday, but the Canadian Dollar could have advanced even further against Sterling if it wasn’t held back by a slump in oil prices.

This week’s only Canadian data of note will be published this afternoon. If Canadian average weekly earnings beat forecasts, Bank of Canada (BoC) interest rate cut speculation could be doused.

Australian Dollar News: Trade Jitters and Political Uncertainties Keep Pressure on AUD

The trade-correlated Australian Dollar was unable to capitalise on the Pound’s losses yesterday. Investors were hesitant to buy the Australian Dollar amid revived US-China trade tensions, as well as speculation that the Reserve Bank of Australia (RBA) will cut Australian interest rates again in October.

No more notable Australian news or data is expected this week, leaving Australian Dollar investors to react to shifts in trade and risk-sentiment.


Upcoming Data

Thursday, 26th September

07:00    German GfK Consumer Confidence

13:30    Canadian Average Weekly Earnings

13:30    US Growth Rate

13:30    US Wholesale Inventories

14:30    ECB President Draghi Speech

16:00    US Kansas Fed Manufacturing Index


Alastair Archbold
Currency Trader
T: 01442 892 062