Good morning,
We start the week off in the wake of the dovish report from Bank of England, with a GBPUSD rate opening just under 1.28, and GBPEUR still holding strong on the 1.16 threshold.
These rates, relative to their recent movement, seem to indicate that the main element of movement has been through USD strength, as the EURUSD has also fallen into its 1.10 weaker zone.
The UK data front this morning will focus on supportive figures for the UK economy. With a potential for a stronger reading due to stockpiling in recent months, GDP figures will be closely looked at.
In the most recent round of US/China discussions, Trump has clarified his position on the deal and readiness to roll back tariffs, stating “If we don’t make that right deal, we’re not going to make a deal”, supplementing with the comment that China wants a deal “Much more than I do”.
Naturally, the Japanese Yen has sheltered worried investors under the safe haven umbrella it has provided throughout the ongoing trade discussions, this time rising 0.2% against the USD.
The Norwegian Krone fell victim to a weak inflation reading this morning. The resulting weakness in the currency will likely bring up an interesting discussion in the Central Bank policy, following four rate hikes in the past year and now a possible conversation around what future support is needed.
In the latest round of Central Bank rate cutting, we will see New Zealand take the stage this Wednesday with an expected 25 basis point cut. As always, variation will instigate volatility.
Have a great day.
Author: Ross Hammond, Senior Corporate Account Manager