Pound Sterling

Pound Buoyed as Brexit Talks Continue and National Lockdown Ruled Out

Pound News: Pound Strengthens as National Lockdown Ruled Out and Brexit Talks to Continue

The Pound made solid gains today as UK Prime Minister talked down the possibility of a second national lockdown.

Added to this, reports that the UK won’t walk away from UK-EU Brexit trade talks despite the upcoming self-imposed lockdown gave Sterling further support.

Brexit will remain the focus for GBP trade ahead of the EU summit on Thursday. Concerns that there could be surprising Brexit developments as a result of the EU Summit are likely to keep Sterling volatile towards the end of the week.

Euro News: EUR Investors Focus on ECB Officials and Market Sentiment

The Euro continues to be driven by strength in rival currencies, like the Pound and US Dollar, although a fall in Eurozone Industrial Production also dragged on EUR sentiment.

Amid a lack of domestic news influencing the shared currency, Euro investors are watching this week’s European Central Bank (ECB) comments.

More comments from ECB officials, including President Christine Lagarde, could influence the Euro in the coming sessions if there are no surprising shifts in reaction to rival currencies.

US Dollar News: US Dollar Mixed in Cautious Trade

The US Dollar was mixed today, starting the day strongly following on from yesterday’s gains in risk-off trade.

Safe-haven demand boosted the US Dollar as hopes for US stimulus continue to fade, global coronavirus cases are surge, and major vaccine trials see delays.

However, these gains were reversed today as market sentiment cautiously improved and the Pound strengthened on optimistic Brexit news.

Over the coming sessions, the US Dollar will continue fluctuating on shifting market sentiment driven by stimulus headlines, Brexit progress, and US election speculation.

Canadian Dollar News: Outlook Fears and Risk-Aversion Limit ‘Loonie’ Advances

The Canadian Dollar’s recent strong streak is facing increasing pressure this week.

As the global coronavirus pandemic worsens again, fears that oil prices will worsen and vaccines will take longer than hoped to be completed weighed on CAD exchange rates.

Canada’s September employment change report from ADP will be published tomorrow, with forecasts pointing towards a smaller monthly decline.

However, while oil prices are supporting the Canadian Dollar, any drop could drag on the ‘Loonie’.

Australian Dollar News: AUD Struggles ahead of Key Australian Job Market Report

The Australian Dollar edged lower today as surging coronavirus concerns, as well as Australia-China trade tensions pushed the trade-correlated Australian Dollar lower.

Tomorrow’s Australian job market report will be one of this week’s biggest datasets. If the data comes in better than expected it could boost hopes of Australian economic resilience and support stronger Australian Dollar demand.

Upcoming Data

Thursday, 15th October

01:00    Australian HIA New Home Sales

13:30    Australian Job Market Report

07:45    French Inflation Rate

13:30    Canadian ADP Employment Change

13:30    US Import and Export Prices

13:30    US Jobless Claims

17:00    ECB President Christine Lagarde Speech