The pound spent last week fluctuating in response to the latest UK political developments, while the mood towards the euro soured sharply in response to weaker-than-expected German inflation figures. Meanwhile, the US dollar was exposed to selling pressure as US markets closed for the Thanksgiving holiday, and AUD exchange rates struggled as the odds of [...] Read more about: "UK election 10 days away, GBP volatility forecast"
UK service sector growth slumps to 40-month low. The pound slumped at the end of last week as markets were left disappointed by the UK’s latest PMI figures.
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An unexpected deterioration from the UK services PMI left the pound on a weaker footing as worries over the fourth quarter growth outlook mounted.
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An unexpected shift towards dovishness from the Bank of England (BoE) saw the pound come under renewed pressure ahead of the weekend Increasing concerns over the health of the German economy limited the appeal of the euro, with the industrial sector remaining under pressure thanks to global trade worries. Growing doubts over the likelihood of [...] Read more about: "Pound comes under renewed pressure"
The former October Brexit deadline slid by on Thursday with the UK still a member state of the European Union thanks to a three-month extension granted by EU leaders. Despite Prime Minister Boris Johnson’s mantra that the UK would leave the European Union, do-or-die, on October 31, the deadline came and went without incident, offering [...] Read more about: "UK election speculation drives GBP movement"
Last week saw GBP investors cheer news that UK and EU negotiators had reached a consensus, sharply reducing fears for a no-deal outcome in October and boosting the pound across the board. The Democratic Unionist Party (DUP) refused to endorse the proposed deal, with Arlene Foster claiming the agreement ‘traps’ Northern Ireland in the single [...] Read more about: "Reduced odds for a no-deal Brexit drive pound higher"
The pound rose sharply across the board on Friday, driven by hopes for a Brexit breakthrough between UK and EU officials. As UK and EU officials agreed to hold intensive ‘tunnel’ negotiations over the weekend the mood towards the pound dramatically improved, buoyed by hopes that a Brexit breakthrough might finally be on the cards. [...] Read more about: "Intense Brexit talks lift pound to four-month highs"
An initially positive reaction to Boris Johnson’s Brexit proposal was not enough to keep the pound on an uptrend for long, with the Irish border issue still proving contentious. As EU officials showed little enthusiasm for Johnson’s ‘final offer’ a sense of Brexit-based anxiety soon started to drag on GBP exchange rates again. With French [...] Read more about: "Pound suffers as optimism over Johnson’s Brexit proposals"
The pound (GBP) failed to cling onto its monthly high as hopes for a potential Brexit extension dwindled. Although the European Central Bank (ECB) delivered a fresh volley of monetary loosening, the euro (EUR) soon bounced back from its initial decline. Support for the US dollar (USD) proved limited as the US economy offered mixed [...] Read more about: "ECB action fails to hold down euro"
