Pound News: Sterling Focuses on Brexit with UK Growth Unsurprising
Today’s UK growth report was a little better than projected, but still showed huge, unsurprising contractions in Q2. This did little to boost Pound appeal, leaving Sterling sensitive as investors await Brexit developments.
The final round of UK-EU Brexit negotiations will end on Friday. If there are any breakthroughs in talks, they could happen in the coming days, which would buoy GBP exchange rates.
The Pound received support later in the day as market sentiment improved, which lifted Sterling across the board.
Euro News: Euro Lacks Drive as Rival Currencies Dominate Market Movement
The Euro failed to find support today in the falling German unemployment rate and better-than-expected retail sales month-on-month.
However, as markets focused on reaction to the US Presidential Debate and Brexit uncertainty, the Euro was driven more by market sentiment and movement in rival currencies like the Pound and US Dollar.
More key Eurozone data is due in the coming days. If tomorrow’s manufacturing PMI surprises it could drive some Euro movement, and Europe’s coronavirus situation will remain influential as well.
US Dollar News: US Political Uncertainty Drives US Dollar Volatility
Last night’s anticipated US Presidential Debate was seen as chaotic and bad-tempered. US political uncertainty was a little worse following the debate, which bolstered market demand for the safe haven US Dollar.
However, news later in the day that talks are resuming for a coronavirus relief fiscal stimulus in US Congress, with Republicans and Democrats expressing hope for a breakthrough, improved market sentiment that in turn weighed on the US Dollar.
Markets are likely to calm from the debate in the coming sessions, as it had little notable impact on the election outlook, while upcoming US manufacturing PMI data could influence the US Dollar tomorrow.
Canadian Dollar News: Oil Market Concerns Limit CAD Rebound
The Canadian Dollar attempted to rebound slightly today as it made modest gains due to a 3% GDP reading for July and its correlation with the US Dollar.
However, as oil company Shell announced it was cutting 9000 jobs, concerns about the oil market weighed on the Canadian Dollar’s appeal.
Canada’s September manufacturing PMI will be published tomorrow. If the data beats expectations, it could bolster market support for the Canadian Dollar.
Australian Dollar News: ‘Aussie’ Mixed in Fluctuating Market Sentiment
Some US political uncertainty over the past few sessions failed to make investors sell the risk-correlated Australian Dollar, with hopes for positive developments in global uncertainties like Brexit, the coronavirus pandemic, and new US fiscal stimulus keeping AUD buoyed.
Ai Group and Markit will both publish Australian manufacturing PMIs for September tomorrow, potentially stoking volatility. However, market risk-sentiment and the coronavirus pandemic will remain the focus of Australian Dollar movement.
Thursday, 1st October
00:00 Australian Manufacturing PMI
08:50 French Manufacturing PMI
08:55 German Manufacturing PMI
09:30 UK Manufacturing PMI
10:00 Eurozone Unemployment Rate
13:30 US PCE Inflation Rate
14:30 Canadian Manufacturing PMI
15:00 US Manufacturing PMI