Pound News: Brexit Deadline Uncertainty Weighs on GBP
As the coronavirus pandemic has hurt Britain’s services-focused economy particularly hard, this week’s news of major vaccine progress has notably boosted the UK outlook.
However, the Pound came under pressure renewed pressure during today’s session amid reports that an EU summit on 19 November needs to be seen as the deadline for a draft Brexit deal.
Key UK GDP data will be published tomorrow. Will a solid third quarter growth reading boost hopes that Britain will weather the second coronavirus lockdown?
Euro News: Eurozone’s Coronavirus Situation Continues to Worsen
While the Euro is also benefitting from coronavirus vaccine news, the Euro has been resilient amid the pandemic so far. As a result, it has less room to recover and more to lose from the Eurozone’s currently worsening coronavirus situation.
As the European Central Bank (ECB) signalled again that more easing is likely to combat the impact of the pandemic, the Euro slipped today.
German inflation data due tomorrow could further dampen the Euro if it disappoints, while more comments from ECB officials could also weigh on EUR sentiment.
US Dollar News: Safe-Haven Demand Lingers as Coronavirus Vaccine Concerns Persist
This week’s coronavirus vaccine news has led to a surge in demand for riskier currencies. However, as uncertainties about the vaccine persist, appeal in the safe-haven US Dollar increased.
Markets are concerned about how the vaccine could be efficiently distributed in the US, keeping safe-havens buoyed.
Tomorrow will see the publication of US inflation rate news, but it is unlikely to be hugely influential. The US Dollar’s focus will remain on market sentiment and safe haven demand for now.
Canadian Dollar News: CAD Slipping with USD despite Oil Price Rebound
Prices of oil, Canada’s biggest export, have been rebounding this week in reaction to coronavirus vaccine hopes. Despite this though, the Canadian Dollar has been falling against the Pound.
No notable Canadian data is due for the remainder of the week, which will leave CAD to be driven by shifts in market sentiment and US Dollar strength.
Australian Dollar News: Markets Pull Away from AUD as Vaccine Rally Cools
Australia had already been handling the coronavirus pandemic well. As a result, the Australian Dollar’s reaction to the coronavirus vaccine news was limited.
GBP/AUD continues to climb as Sterling benefits from the news more and the market’s rally softens.
Australia’s latest consumer inflation expectation report is due tomorrow, but is likely to be overshadowed by fresh developments in politics and the coronavirus.
Thursday, 12th November
00:00 Australian Consumer Inflation Expectations
07:00 German Inflation Rate
07:00 UK Trade Balance
07:00 UK Growth Rate
07:00 UK Manufacturing and Industrial Production
10:00 Eurozone Industrial Production
13:30 US Inflation Rate
16:45 Speeches from Major Central Bank Bosses