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Euro Rockets on ECB Comments as No-Deal Brexit Fears Escalate

Pound News: Pound Plunges on EU Legal Warning

The Pound continued to plummet today as UK-EU tensions escalated after the European Commission released a statement saying the internal markets bill has ‘seriously damaged trust’ between the two sides.

Added to this, speculation increased that the UK could quit negotiations, pushing the Pound to a six-month low against the Euro.

Tomorrow will see the publication of Britain’s July growth rate report. Unless the growth report is surprising though, no-deal Brexit fears will continue to drag on Sterling.

 

Euro News: European Central Bank (ECB) Leaves Policy Unchanged

The European Central Bank (ECB) left monetary policy untouched as expected, and the Euro saw a jump in demand in the aftermath of the policy decision.

This was due to higher 2020 growth forecasts from the bank, talking down deflation, as well as fewer comments about the Euro’s strength than expected.

Germany’s August inflation rate report will be published tomorrow, while Euro investors will likely continue digesting today’s European Central Bank news and Brexit developments.

 

US Dollar News: USD Outlook Remains Weak amid Rise in US Jobless Claims

Due to US political and coronavirus uncertainties, the US Dollar struggled overall, although USD made significant gains against the Pound.

The rebound seen last week has largely run out of steam as the currency came under further pressure today from worse-than-expected US jobless claims.

Tomorrow’s US inflation rate data may stoke some movement in the US Dollar while the ‘Greenback’ may more likely come under pressure from market sentiment and movement in its rival the Euro.

 

Canadian Dollar News: Bank of Canada’s Resilient Tone Supports CAD

The Canadian Dollar held more gains against the Pound thanks to Wednesday’s fairly optimistic Bank of Canada (BoC) news. Slightly stronger prices of oil, Canada’s most lucrative commodity, also supported CAD.

Tomorrow will see the publication of Canada’s Q2 capacity utilisation report. The data is unlikely to be particularly influential, so CAD will remain sensitive to oil prices and market risk sentiment.

 

Australian Dollar News: ‘Aussie’ Resilience Keeps GBP/AUD near Worst Levels

The Pound to Australian Dollar is struggling to mount a recovery from its worst levels.

 

The Australian Dollar is still benefitting from lingering risk-sentiment, and it is one of this week’s stronger major currencies.

However, market shocks leading to a rise in safe-haven demand could hit the Australian Dollar before the end of the week.

 

 

Upcoming Data

 

Friday, 11th September

07:00    German Inflation Rate

07:00    UK Trade Balance

07:00    UK Industrial and Manufacturing Production

07:00    UK Growth Rate

13:30    US Inflation Rate

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