The pound is off to another rough start this week as the lack of details around next year’s hard Brexit plans continue to weigh on the currency. Financial Policy Committee member Anil Kashyap’s recent comments that a hard Brexit (where the UK would give up access to the single EU market) would lead the pound lower is adding to the pessimism, along with Monetary Policy Committee member Michael Saunders’ written testimony that said he wouldn’t be surprised if the pound fell further.
Meanwhile, the US dollar is climbing to its highest levels since July as investors grow more optimistic that the Federal Reserve will raise interest rates in December. Other major currencies are trading lower against the rising dollar this morning with little new data out around the world.
The euro is trading lower against a stronger US dollar despite economic sentiment out of Germany and the broader Eurozone showing more optimism from institutional investors than analysts had anticipated.
The Canadian dollar is also falling against its rising US counterpart as oil prices dip. That said, the northern currency is being buoyed somewhat by stronger-than-expected housing starts in September. The Australian dollar is falling against a stronger greenback with no new data out from the country this morning.
EURUSD: The euro is falling against a rising USD despite positive institutional investor sentiment out of Germany and the broader Eurozone.
GBPUSD: The pound is down as uncertainty around next year’s hard Brexit plans persist.
AUDUSD: The Aussie dollar is trading lower against the greenback with no new data out of the country.
USDCAD: The Canadian dollar is down as oil prices dip, despite stronger-than-expected housing starts for September.