Pound holds its ground after recent fall, markets await Trump’s presser
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After a heavy sell-off that resulted in Sterling losing 1.8% of its value against the US Dollar in just two days, speculators finally seemed to give the Pound a badly needed break. After the strong reaction it is clear that political developments will be the key to the currency’s future movement.
Major currencies in detail
GBP
The Pound ended the day unchanged against the greenback during London trading.
In the absence of any major macroeconomic releases markets were focused on Brexit developments. This time however, the news wasn’t all bad. Think-tank ‘British Influence’ argues that Britain being a member of European Economic Area is independent of being a member of the European Union. Deputy director Jonathan Lis said that if the government decides to leave the EEA, Article 127 of the EEA Agreement would need to be triggered. A hearing on this case should begin in High Court of London next week on Friday.
Today’s Manufacturing Production and the Trade Balance data for November are the most important informations from the UK.
EUR
Euro ended Tuesday’s session 0.4% lower against the US Dollar.
Tuesday was quite calm for the Euro which didn’t move much in absence of critical market information. After peaking during an Asian session the common currency bears prevailed and Euro ended the European session lower versus the US Dollar and Sterling, in a move that gained momentum after European traders came in.
In the absence of important publications from the Eurozone the focus will be on developments in the United States.
USD
The US Dollar Index higher by 0.1% on Tuesday.
Macroeconomic data published on Tuesday was fairly mixed, but as a whole added to the tone of recent job-market strength. Closely watched indicator due to its importance to FED, which is Job Openings was little changed at 5.522 million, however below the consensus’ prediction of 5.555 million. Last month’s number was revised downwards to 5.451 million from 5.534 million. A very important positive aspect was the increase in the number of people voluntarily quitting their jobs, a sign of increasing worker confidence on their prospects on the labor market.
Today’s Donald Trump’s news conference will be the key focus for markets.