Pound Sterling

Brexit Uncertainty Returns amid Lack of Progress

Pound News: Anxiety over Brexit and UK Economy Casts Clouds over GBP

The Pound edged lower today as investors sold the Pound from its best levels as fears persist that UK-EU Brexit negotiations could still collapse.

Markets are also concerned about Britain’s economic outlook as the UK may have to weather the combined impact of both Brexit and the coronavirus pandemic.

As a result, developments over Brexit negotiations will remain the focus for Pound investors in the coming sessions.

Euro News: Weakness in Rivals Caps Euro Losses

As the Pound was weaker on Brexit jitters today, and the US Dollar struggled amid increased risk-on trade, the Euro was more appealing by comparison, and gained on its rival weakness.

Markets are also fairly optimistic about how the Eurozone has been handling the coronavirus pandemic second wave compared to the UK and US handling of the pandemic.

Comments from European Central Bank (ECB) officials could influence the Euro’s movement tomorrow as ECB meeting minutes are released, and German consumer confidence stats are also likely to be influential.

US Dollar News: Market Risk-Sentiment Weighing on USD

Global markets are more willing to take risks, as coronavirus vaccine hopes make investors more optimistic, making the safe-haven US Dollar less appealing.

For now, US Dollar investors are awaiting this evening’s Federal Reserve meeting minutes report. If the Fed minutes are more dovish on the US economy than expected, the US Dollar’s strength will likely be limited.

Canadian Dollar News: CAD Rebound Limited Despite Strong Oil Prices

This week has seen prices of oil hit their best levels since March on the back of coronavirus vaccine hopes. This has supported demand for the Canadian Dollar, although the ‘Loonie’ was unable to capitalise against some of its peers.

Canada’s average weekly earnings stats from September will be published tomorrow. However, oil prices are more likely to be influential to the Canadian Dollar’s movement.

Australian Dollar News: Risk-Sentiment Keeping AUD Buoyed

The risk-sensitive Australian Dollar has been benefitting from coronavirus vaccine news and hopes of a global economic rebound from the pandemic next year.

Australia’s apparent economic resilience has also made the ‘Aussie’ more appealing in recent sessions.

Not much notable Australian data is due for publication through the end of the week, which will leave AUD driven more by shifts in market sentiment.

Upcoming Data

Thursday, 26th November

07:00    German GfK Consumer Confidence

07:45    French Consumer Confidence

09:00    UK Car Production

12:30     ECB Monetary Policy Meeting Accounts

13:30     Canadian Average Weekly Earnings