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UK Election and Soft Brexit Hopes Give Sterling a Strong Start

Pound News: Sterling Recovers on Hopes that Political Uncertainty Will Ease

The Pound fell last week, but quickly recovered much of those losses yesterday due to the latest UK election hopes. Polls indicate that the Conservative Party is comfortably ahead, and Prime Minister Boris Johnson has indicated he will put his relatively soft Brexit plan to Parliament before Christmas if he wins.

Election developments will remain the focus for Pound investors this week. Today’s UK finance mortgage approvals data is unlikely to have a notable impact on Sterling.

 

Euro News: Euro Outlook Remains Gloomy amid German Business Confidence Miss

The Euro experienced mixed movement yesterday, driven largely by strength in its rivals. The Euro also came under pressure after Ifo’s latest German current conditions stats printed short of forecasts, keeping investors anxious about the health of the Eurozone economy.

German consumer confidence data for December could support the Euro if it beats expectations today but another disappointing result would be Euro-negative.

 

US Dollar News: US-China Trade Hopes Keep US Dollar Supported

The US Dollar didn’t see much in the way of supportive US data yesterday, but its losses against the Pound were relatively limited as US-China trade hopes persisted. US and China officials continue to indicate that they hope a ‘phase one’ trade deal can be reached soon.

US goods trade balance and wholesale inventory stats, as well as new home sales figures, will be published today. These have the potential to influence the US Dollar if there are no notable US-China trade developments.

 

Canadian Dollar News: CAD Steady as Investors Await Friday’s Major Growth Data

Today’s Canadian wholesale sales data beat forecasts, coming in at 1.0% rather than the expected 0.4%. However, the Pound to Canadian Dollar exchange rate still saw strong gains overall, as investors are hesitant to move too much on the Canadian Dollar ahead of major Friday data.

With no more notable Canadian data due for publication until Thursday, the trade-correlated currency will continue to be driven by rival movement and US-China trade developments for now.

 

Australian Dollar News: US-China Hopes Fail to Keep AUD Steady

The Australian Dollar briefly benefitted from hopes for improving US-China trade relations yesterday. However, Reserve Bank of Australia (RBA) and economic uncertainty ultimately kept the ‘Aussie’ unappealing and GBP/AUD gained for most of the session.

Reaction to a speech from RBA Governor Philip Lowe could influence Australian Dollar movement today, as investors await further US-China trade news and Australian data due later in the week.

 

Upcoming Data

Tuesday, 26th November

00:00    Fed Chairman Powell Speech

07:00    German GfK Consumer Confidence

13:30    US Goods Trade Balance

13:30    US Wholesale Inventories

15:00    US New Home Sales

15:00    US Richmond Fed Manufacturing Sales

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