Pound News: Brexit Steady amid Brexit Uncertainty
Speculation over whether or not the UK and EU will reach a deal on Brexit before the end of the Brexit transition period is intensifying.
The Pound made some modest gains on Monday on comments from UK Foreign Secretary Dominac Raab that an agreement on fisheries ‘ought’ to be achievable this week.
Britain’s final November manufacturing PMI from Markit will be published tomorrow. This could be influential if it surprises investors, but potential UK-EU Brexit developments are more likely to cause movement.
Euro News: Euro Mixed as German Slips into Deeper Deflation
The Euro fell against the Pound and Euro at the start of the week as Germany’s inflation rate came in lower-than-expected at -0.3%, indicating a third consecutive month of deflation.
Meanwhile, comments from European Central Bank (ECB) President Christine Lagarde urging more fiscal policy had little impact on the Euro’s movement.
Manufacturing PMI data from across the Eurozone is due tomorrow, as well as German unemployment figures from November will both drive movement in the single currency.
US Dollar News: US and Global Outlooks Keeping USD Unappealing
The US Dollar is being kept weak by a combination of US and global factors. In the US, mixed data and expectations for an extended period of loose monetary policy from the Federal Reserve are weighing on USD exchange rates.
Hopes for the global economy to recover from the coronavirus pandemic next year are also weakening the US Dollar, as investors sell safe havens.
US manufacturing PMI data from ISM will be published tomorrow, which could lead to further US Dollar weakness if it indicates that the US economy is struggling amid the coronavirus pandemic.
Canadian Dollar News: Oil Prices Slip, Limiting CAD Gains
The Canadian Dollar advanced against the Pound last week as CAD has been benefitting from rising prices in oil, Canada’s biggest export.
However, oil prices slipped back from highs since last week, limiting the Canadian Dollar’s appeal.
Tomorrow will be a key session for Canadian data releases. Not only will Canadian manufacturing stats be published, but Canada’s Q3 growth rate report is due.
Australian Dollar News: ‘Aussie’ Slips as Risk Rally Pauses Ahead of RBA
The Australian Dollar is falling today, making it easier for GBP/AUD to recover some of last week’s losses.
Following a long risk-rally, markets are taking a breather today limiting the upside potential of the risk-sensitive Australian Dollar.
Still, the ‘Aussie’ outlook remains fairly bullish overall. The Australian Dollar could push GBP/AUD lower if risk-sentiment rises again, and tomorrow’s Reserve Bank of Australia (RBA) policy decision will also be closely watched by investors.
Tuesday, 1st December
03:30 Reserve Bank of Australia (RBA) Policy Decision
08:50 French Manufacturing PMI
08:55 German Manufacturing PMI
08:55 German Unemployment Rate
09:00 Eurozone Manufacturing PMI
09:30 UK Manufacturing PMI
10:00 Eurozone Inflation Rate
13:30 Canadian Growth Rate
14:30 Canadian Manufacturing PMI
15:00 US Manufacturing PMI