Currency Exchange

GBP: a poor week for GBP, prompting GBP/USD to lowest level in 4months (1.2715) and GBP/EUR at 1.1400. Sentiment has drained away, with internal domestic fighting not helping – as can be read in this link on Reuters: https://uk.reuters.com/article/uk-britain-eu-hammond/hammond-backing-a-no-deal-brexit-means-deliberately-harming-economy-idUKKCN1SQ274

Treasury Select Committee meets later today, with plenty of Bank of England speakers to focus on. The Inflation Report will be the focus, and we are bound to have some important headlines from the Bank regarding the state of the UK economy against the backdrop of Brexit.

USA: Trade wars may dominate, but the USD has been steadily performing, pushing EUR/USD to recent lows at 1.1150. A drop through 1.1110 could herald lower lows. This afternoon sees plenty of Fed speakers to keep the markets on their toes.

Tomorrow evening the minutes of the previous central bank meeting are released, and will be closely watched for hints about rate moves, in the context of political ‘wrangling’ across the globe.

AUD: Lower, after Central Bank comments and the previous minutes were very dovish, forcing all 4 of the big Aussie banks to forecast 2 rate CUTS this year as the economy struggles.

CAD: Everyone waiting for data later this week keeps CAD on the sidelines.

info@blueoceanestates.es

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