Pound News: No-Deal Brexit Fears Ease/Election Fears Rise as Sterling Fluctuates
As UK Parliament reconvened yesterday for a week of expected Brexit chaos, Sterling reacted with volatility.
The Pound enjoyed an initial boost as opposition MPs regained control of parliament and successfully tabled a bill intended to delay a no-deal Brexit.
However, Prime Minister Boris Johnson has subsequently called for a snap general election which could limit yesterday’s gains.
Meanwhile, Labour leader Jeremy Corbyn has warned his party will not agree to an election unless no-deal is off the table, a position which could bolster hopes for the Pound.
The vote for blocking a no-deal Brexit will take place later today with the result likely to have a significant impact on the British currency.
Euro News: European Central Bank (ECB) Forecasts Limit EUR Strength
Amid a lack of fresh Eurozone data yesterday Euro movement remained weak, with economists making predictions the European Central Bank (ECB) will ease monetary policy during its September policy decision next week.
The Eurozone’s latest services PMIs and retail sales stats will be published today and could influence ECB policy speculation and Euro movement if they surprise investors.
US Dollar News: Unexpected Manufacturing Contraction Pressures USD
The US Dollar was unable to capitalise on the Pound’s weakness yesterday, as the latest US manufacturing PMI from ISM showed an unexpected contraction.
This afternoon’s US trade balance report is expected to reveal the extent of US economic damage inflicted by the US-China trade war with the results likely to influence US Dollar movement today.
Canadian Dollar News: Bank of Canada (BoC) Predictions Limit CAD Strength
CAD Investors were cautious of the Canadian Dollar yesterday as they anticipated Wednesday’s Bank of Canada (BoC) meeting. Weaker oil prices also weighed on the ‘Loonie’.
Though changes to monetary policy are not expected from this afternoon’s meeting, the Canadian Dollar could strengthen if the central bank avoids the dovish tone many analysts predict.
Australian Dollar News: ‘Aussie’ Capitalises on Pound Weakness after RBA News
The Australian Dollar – one of Tuesday’s strongest performing major currencies – saw increasing investor support yesterday as the Reserve Bank of Australia (RBA) struck a less dovish tone than analysts predicted.
Reactions to Australian services and growth data kept AUD movement firm today. While the growth results were unsurprising, the nation’s latest services PMI showed an unexpected rebound.
Wednesday, 4th September
Australian Services PMI
02:30 Australian Growth Rate
08:50 French Services and Composite PMI
08:55 German Services and Composite PMI
09:00 Eurozone Services and Composite PMI
09:30 UK Services and Composite PMI
10:00 Eurozone Retail Sales
13:30 US Trade Balance
13:30 Canadian Trade Balance
15:00 Bank of Canada Policy Decision
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