Pound Sterling

Final Week of Brexit Negotiations to Drive Volatility in the Pound

Pound News: Hopes for Brexit Breakthrough Lift Sterling

This week is set to see the final round of UK-EU Brexit negotiations. Hopes that brinksmanship will lead to a breakthrough sometime this week are helping the Pound to keep trending with an upside bias this week so far.

The Pound could continue gaining through the week if the negotiations reach a breakthrough. On the other hand, the Pound could plummet if there are no optimistic developments, or if Britain’s coronavirus outlook worsens.

Euro News: EUR Losses Slow despite Ongoing Coronavirus Struggles

Last week saw the Euro tumble as its rival the US Dollar gained on safe-haven demand. This week so far, the Euro’s sell-off has calmed slightly but the shared currency outlook is still mixed due to the worsening coronavirus situation in the Eurozone.

Comments from European Central Bank (ECB) President Christine Lagarde today will likely drive EUR movement as she outlined the need for government packages to protect loans and jobs to guard against hardship caused by the pandemic.

Added to this, shifting market sentiment and safe-haven demand will also influence Euro exchange rates in the coming sessions.

US Dollar News: USD Bullishness Softens amid Domestic Concerns

The US Dollar surged across the board last week as investors piled into safe-haven USD amid a second wave of coronavirus infections globally. However, the US Dollar’s rally is slowing today amid US economic and political uncertainty, which is making it easier for GBP/USD to advance.

US wholesale and trade balance data will be published tomorrow, with poor expectations for both. Overall though, the US Dollar’s movement is likely to remain focused on the coronavirus pandemic and global market sentiment, which could shift again after the first US presidential election debate in the early hours of Wednesday.

Canadian Dollar News: Oil Prices Limit Canadian Dollar Losses

The Canadian Dollar has been among the risk and trade-correlated currencies hit by the latest market coronavirus panic. Signs of rising prices in Canada’s biggest export, oil, are helping CAD to be more appealing than other risk-correlated currencies, however.

Canadian PPI data due tomorrow is unlikely to be particularly influential. Investors will be paying closer attention to oil prices and the overall mood on risk and trade-correlated assets.

Australian Dollar News: ‘Aussie’ Remains Weak on Risk-Aversion and RBA Bets

The Australian Dollar plummeted last week as investors sold risk and trade-correlated currencies in favour of safe havens. This, as well as rising Reserve Bank of Australia (RBA) interest rate cut bets, are keeping the Australian Dollar weak today.

As no notable Australian data is due tomorrow, this will likely leave AUD reacting to risk-sentiment and RBA speculation until later in the week, when key Australian manufacturing and retail stats will be published.

Upcoming Data

Tuesday, 29th September

07:45    French Consumer Confidence

10:00    Eurozone Consumer and Business Sentiment

13:00    German Inflation Rate

13:30    US Wholesale Inventories