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Trade-Correlated Currencies Rebound, GBP Poised for Losses

Pound News: Sterling Set for Losses after UK GDP Data

The Pound struggled again yesterday as rising no-deal Brexit bets weighed heavily on the British currency. According to a Reuters poll, the median chance of a no-deal Brexit has risen to 35% since Boris Johnson became UK Prime Minister.

Investors also became more concerned that there could be a general election on the cards following a no-deal Brexit.

Some of this week’s most notable UK data, including growth rate stats, will be published today. Stagnating or contracting growth would be GBP-negative.

Euro News: EUR Steady Despite German Trade Data

The Euro is holding steady today despite some disappointing German trade figures. This morning’s trade report revealed an unexpected drop in German exports. Further signs that Germany is poised for recession would be EUR negative.

US Dollar News: USD Dips as Risk-Appetite Rises

Strong Chinese data bolstered risk appetite and reduced demand for the safe-haven US Dollar.

US PPI data due for publication today is unlikely to be heavily influential, so the US Dollar is more likely to remain focused on global trade developments and the strength of rival currencies.

Canadian Dollar News: Risk-Sentiment Cools and Trade-Correlated CAD Steadies

The Canadian Dollar benefited from rising risk appetite yesterday amid hopes for US-China trade negotiations and some robust Chinese data.

The ‘Loonie’ also found a little support from news that oil prices had risen.

This week’s most notable Canadian data will be published today. If Canadian job market stats from July beat forecasts CAD could rise.

Australian Dollar News: ‘Aussie’ Firms after RBA Comments

Following its brief slump in the middle of the week, the Australian Dollar saw a surge in demand yesterday. The ‘Aussie’ rebounded as markets found trade-correlated currencies more appealing.

AUD exchange rates also benefited from comments from the Reserve Bank of Australia (RBA) Governor. The remarks suggested that RBA policy wouldn’t be affected by the recent RBNZ rate cut.

Upcoming Data

Friday, 9th August

00:30    RBA Governor Lowe Speech

02:30    RBA Statement of Monetary Policy

07:00    German Trade Balance

07:45    French Industrial Production

09:30    UK Growth Rate

09:30    UK Trade Balance

09:30    UK Manufacturing and Industrial Production

09:30    UK Business Investment

13:15    Canadian Housing Starts

13:30    Canadian Building Permits

13:30    Canadian Job Market Report

Alastair Archbold
Currency Trader
T: 01442 892 062

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