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UK PMI Contraction Shocks Markets, US-China Trade Uncertainty Persists

Pound News: Sterling Slumps as PMIs Revive Bank of England Easing Speculation

The Pound ultimately ended last week on a negative note, as Britain’s November PMI projections showed deeper than expected contractions in the manufacturing and services sectors. This led to fresh Bank of England (BoE) interest rate cut bets.

Despite UK economic jitters, the  focus is likely to remain on UK election developments this week. Investors may react to weekend polls during today’s session.


Euro News: Euro Appeal Limited as Eurozone’s Services Sector Slows

The Euro was one of Friday’s weaker currencies, only gaining slightly against a tumbling Pound. While signs of recovery in Germany’s manufacturing sector caused some market optimism, there was also disappointment that weak manufacturing and trade had appeared to negatively impact the Eurozone’s services sector.

Germany’s November business confidence stats from Ifo will be published today. If they beat expectations they could further boost Eurozone recovery hopes, but if they disappoint the Euro’s weakness will persist.


US Dollar News: Shifting US-China Trade Speculation Driving USD Movement

The US Dollar’s movement was highly mixed throughout last week, but positive US-China trade speculation left the currency a bit sturdier on Friday. US President Donald Trump and China President Xi Jinping both expressed hopes that a trade deal would be reached soon, softening concerns that relations were worsening.

Many key US ecostats will be published this week, starting with Chicago activity index and Dallas Fed manufacturing data today. On top of US data, US Dollar movement will of course remain focused on US-China trade relations as well.


Canadian Dollar News: Canadian Data and Bank of Canada Speculation Boost CAD Recovery

Bank of Canada (BoC) interest rate cut speculation was doused by a less dovish than expected speech from BoC Governor Stephen Poloz last week. This made it even easier for the Canadian Dollar to benefit from optimistic signs in Canadian data. Canada’s latest retail sales results met forecasts.

The Canadian Dollar could remain resilient in the coming week as Bank of Canada monetary policy is now expected to remain steady. Today’s Canadian wholesale sales data could cause BoC and Canadian Dollar movement if it surprises investors though.


Australian Dollar News: US-China Jitters Limit ‘Aussie’ Strength

The Australian Dollar recovered against a weak Pound at the end of last week, but ‘Aussie’ gains have been limited by various factors. US-China trade uncertainties are limiting demand for trade-correlated currencies, and speculation is rising that the Reserve Bank of Australia (RBA) could soon turn to quantitative easing (QE).

This week’s Australian economic calendar will be quieter, leaving Australian Dollar movement focused on US-China trade developments and Reserve Bank of Australia (RBA) speculation.


Upcoming Data

Monday, 25th November

09:00    German Ifo Business Confidence

11:00    UK CBI Distributive Trades

13:30    Canadian Wholesale Sales

13:30    US Chicago Fed National Activity Index

15:30    US Dallas Fed Manufacturing Index

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