Pound News: No-Deal Brexit Fears Keep Pound Tumbling
The Pound continues to fall this week after the revival of no-deal Brexit fears, plummeting across the board and plunging below key resistance levels against USD.
GBP exchange rates keep sliding while the UK government introduces its Internal Markets Bill which overrides parts of the withdrawal agreement and, by a UK minister’s admission, ‘breaks international law in a specific and limited way’.
UK-EU Brexit negotiations are set to continue throughout the week. Any surprise positive shifts in talks, or fresh hopes of a deal, could help the Pound to recover some of this week’s shocking losses.
Euro News: Euro Steadies Ahead of European Central Bank (ECB)
The Euro is seeing slightly stronger demand today as markets await tomorrow’s European Central Bank (ECB) rate decision. The Euro found some support yesterday as German export and Eurozone GDP came in better than forecast, while market sentiment soured.
The ECB is expected to express concern about the Euro’s broad strength in tomorrow’s policy decision. If the bank is more dovish on monetary policy or the Euro than expected, it could put some late-week pressure on EUR exchange rates.
US Dollar News: Risk-Off Trade Boosts Safe-Haven USD
The US Dollar continues to make gains on souring market sentiment and rival weakness this week.
USD is rebounding from lows as safe-haven demand rises on Brexit and coronavirus concerns, while US-China tensions soured risk appetite after Donald Trump suggested decoupling the US economy from China.
Shifts in market risk-sentiment will remain the focus for the US Dollar. If risk-sentiment suddenly rises again, the US Dollar’s recent appeal could soften.
Canadian Dollar News: Rising Oil Prices Keep CAD Steady Ahead of Bank of Canada (BoC)
The Canadian Dollar is seeing relatively firm performance today, ahead of this afternoon’s anticipated Bank of Canada (BoC) policy decision, partially due to a rebound in prices of oil.
Reaction to the BoC policy decision is likely to drive the Canadian Dollar for much of tomorrow’s session, while the speech from BoC Governor Tiff Macklem will also be watched closely tomorrow.
Australian Dollar News: AUD Strengthening despite Risk-Aversion
The Australian Dollar has sustained strong gains against the Pound this week, despite the market’s Brexit and coronavirus worries. The ‘Aussie’ continues to benefit slightly from factors keeping risk-sentiment afloat.
Tomorrow’s Australian consumer inflation expectations data could offer AUD some support if it impresses. Overall, however, shifts in coronavirus and risk-sentiment will remain the biggest factors for AUD movement.
Thursday, 10th September
02:00 Australian Consumer Inflation Expectations
07:45 French Industrial Production
12:45 European Central Bank Policy Decision
13:30 ECB Press Conference
15:00 US Wholesale Inventories
18:00 ECB President Lagarde Speech