Pound News: GBP Fluctuates as Inflation Rises
The Pound (GBP) was met by further volatility on Tuesday following a surprise uptick in the UK’s latest inflation figures.
While some analysts were optimist on the chances of another rise in inflation prompting a response from the Bank of England (BoE), many investors feared it would place even more pressure on British consumers.
Adding to this volatility were suggestions from the EU that the UK was undermining its position in Brexit negotiations, with one senior MEP warning that this could dent the chances of a transitional deal.
Sterling sentiment may rebound later this morning however, with economists forecasting that today’s data will show an uptick in wage growth in October.
Euro News: EUR Gains Tempered by Dip in German Economic Sentiment
The Pound to Euro (GBP/EUR) exchange rate continued to trend in a wide range yesterday as the European parliament’s coordinator, Guy Verhofstadt claimed that recent comments from David Davis has damaged trust in the EU.
However the Euro was forced to relinquish its gains following the release of Germany’s latest Economic Sentiment Index as it dipped more than expected in December.
The single currency may pick itself back up this morning however as data is expected to show that Eurozone industrial production recovered in October.
US Dollar News: USD Firms of Fed Rate Decision
The Pound to US Dollar (GBP/USD) exchange rate slipped again on Tuesday as the ‘Greenback’ strengthened ahead of the Federal Reserve rate decision later today.
Economists overwhelming predict that the Fed will vote to raise interest rates today in a move that has largely been priced in by investors.
However markets will be keen to hear the bank’s policy plans for the coming year, with many fearing that stubbornly low inflation could dampen hopes for multiple rate hikes in 2018.
Meanwhile ahead of the Fed’s rate decision later this evening the US Dollar may be strengthened by the latest US CPI figures as inflation is forecast to have risen from 2% to 2.2% last month.
Canadian Dollar News: GBP/CAD Fluctuates, Oil Climbs over $65 a Barrel
The Pound fluctuated against the Canadian Dollar (CAD) on Tuesday with the ‘Loonie’ strengthening in the morning as the closure of a key North Sea pipeline sent oil prices over $65 a barrel and causing them to reach a new two-year high.
However Sterling clawed back its losses later in the day as the UK moved to allay fears it may backtrack on its Brexit agreement.
Meanwhile a relatively quiet start to the week for Canadian data is likely leave the Canadian Dollar a little directionless today, especially in the calm leading up to the Fed’s policy meeting.
Australian Dollar News: GBP/AUD Tumbles as Commodity Prices Rise
The Pound to Australian Dollar (GBP/AUD) exchange rate slumped by around half a cent on Tuesday as the ‘Aussie’ was lifted by rising commodity prices.
The uptick in commodity prices was largely on the back of the jump in crude, but was also aided by rising demand for iron ore and coking coal in China.
Looking ahead the Australian Dollar is likely to advance even higher overnight on Wednesday with the release of Australia’s latest labour report, with employment expected to have rebounded last month after slowing in October.
New Zealand Dollar News: NZD Strengthened on Hopes for Hawkish RBNZ
Sterling continued to trend lower against the New Zealand Dollar (NZD) on Tuesday, with the pairing forfeiting another cent as the ‘Kiwi’ extended its gains over speculation that the new governor of the Reserve Bank of New Zealand (RBNZ), Adrian Orr may shift the bank in a more hawkish direction.
However the New Zealand Dollar may struggle to further build on these gains on Wednesday, with investors likely to shy away from the riskier ‘Kiwi’ ahead of the Fed’s rate decision.
Wednesday, 13 December, 2017
07:00 DE Inflation (Nov)
09:30 UK Unemployment Rate (Oct)
09:30 UK Wage Growth (Oct)
10:00 EU Industrial Production
13:30 US Inflation (Nov)
19:00 US Fed Rate Decision (Dec)
Thursday, 14 December 2017
01:30 AU Unemployment Rate (Nov)
01442 892 070