GBPUSD dropped to 1.3282 this morning, shortly after 8am and the markets pile more pressure onto the pound.
GBPEUR is hovering around the 1.0950 mark following a similar drop.
EURUSD is pushing onwards to the December highs of 1.2175 again, with price stalling there three times this month already.
UK employment data this morning proved that the furlough scheme has shielded the UK economy to a certain extent. This should read as no surprise and GBP shrugs it off before diving back into Brexit related movements.
Overnight, the RBA have signalled that they are prepared to do more if required, with a focus on bond buying. They do not expect to raise the cash rate for at least three years, and are comfortable with the delivery of vaccines reducing global risk. Iron ore demands remain firm and will be a key export focus for the economy whilst tourist migration remains capped. The Aussie dollar was weaker across the board, with AUDUSD dropping 0.5% on the meeting minutes.
News that New York may trigger a lockdown has sparked some risk flows with UK and European equity markets all opening lower this morning.
Whether you’re making or receiving international payments in December, or are planning for the months ahead, these are very uncertain times for the currency markets. If you’d like to discuss anything in more detail, please reach out to our account management team for more support.
Have a great day.
Author: Alistair Hutson, Senior Relationship Manager
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.
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