Good morning,
Overnight GBPUSD climbed to 1.3140 before plummeting to 1.2914, representing a 1.7% swing in price. The results of the election are not clear at this stage, and with a record number of postal votes to process, it may be sometime before an official result is concluded. As a result, the Dollar will continue to switch between risk on and risk off depending on the various headlines which appear across the web. GBPUSD’s average rates for October and September were 1.2941 and 1.2916, so price is well within the bounds of normality, for now.
The UK service sector data from October highlights a shortcoming in the economy that will likely be addressed by the Bank of England this week – it has seen its slowest output in growth since June. However, despite England going into a new month-long lockdown, and pressure mounting on nearly all industries, the pound from a trading perspective is remarkedly robust. This underlying confidence may stem from the belief that the new measures will have a hard stop on 2nd December – Dominic Raab confirmed that would be the case this morning.
US employment change and ISM Services [non-manufacturing] are due out this afternoon. This economic data is likely to be overshadowed by political developments.
If you’re worried about future exchange rates, WorldFirst can help with forward contracts. Speak to one of our account managers to find out more information.
Have a great day.
Author: Alistair Hutson, Head of Relationship Management
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.