Pound News: Brexit and Manufacturing Jitters Keep Pound under Pressure
The Pound was unable to hold the gains seen earlier in the week as markets refocused on UK economic uncertainty yesterday. Sterling tumbled amid weaker than expected UK manufacturing stats and anxiety ahead of the formal Brexit date at the end of this month.
Britain’s latest construction PMI will be published today. However the data may not be hugely influential as the focus remains on Brexit.
Euro News: EUR Strength Limited by Concerning Eurozone Manufacturing
The Eurozone’s final December manufacturing PMI beat expectations yesterday, but despite this, demand for the Euro was limited. The manufacturing data was still broadly disappointing, and fresh US Dollar strength also pressured the Euro.
French and German inflation stats, as well as German unemployment results, round out the week today. If they beat expectations they could boost the Euro.
US Dollar News: USD Bounces Back following Days of Losses
Investors have had little reason to buy the US Dollar lately, as risk-on movement led to US Dollar losses for much of December. The US Dollar saw a solid rebound from its worst levels yesterday, but its potential for further gains is limited.
If today’s US manufacturing PMI from ISM disappoints investors, the US Dollar could start to tumble again as the data could cause fresh Federal Reserve interest rate cut speculation.
Canadian Dollar News: CAD Sturdy at the Start of 2020
The Canadian Dollar was one of last year’s best performing currencies, and despite yesterday’s underwhelming Canadian manufacturing stats the currency started 2020 off with continued strength. Trade optimism and the US Dollar rebound both helped the Canadian Dollar.
No more notable Canadian data will be published until next week. Until then, trade developments and Bank of Canada (BoC) speculation will drive the Canadian Dollar.
Australian Dollar News: Weak Manufacturing Data Limits AUD Strength
The Pound to Australian Dollar has been able to hold a little closer to this week’s highs due to Australian Dollar weakness. Poor Australian and Chinese manufacturing PMI stats, as well as a rebounding US Dollar, left the Australian Dollar weaker yesterday.
More Australian PMI data will be published next week. For now, Australian Dollar movement will be influenced by global trade news and US Dollar strength.
Friday, 3rd January
07:45 French Inflation Rate
08:55 German Unemployment ate
09:30 UK Construction PMI
13:00 German Inflation Rate
15:00 US Manufacturing PMI
19:00 Federal Reserve Meeting Minutes
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