The pound is tumbling to its lowest levels since last month after British foreign secretary Boris Johnson recently suggested that the UK could make a swifter-than-expected break from the European Union. Johnson told Sky News on Thursday that the country wants to trigger the Article 50 seperation process in early 2017, with plans to exit the EU in less than two years after that. The shortened time frame for the actual Brexit event may be causing uncertainty around the UK’s trading agreements and is putting pressure on the pound.
The euro is up as France, Germany, and the broader Eurozone’s manufacturing activity readings came in stronger than analysts had expected three months out from June’s Brexit vote. That said, weaker-than-expected service sector activity out of Germany and the broader Eurozone is holding the euro back somewhat.
Overseas, the Canadian dollar is falling as Canada’s retail sales shrank 0.1% during July while consumer prices (inflation) receded 0.2% in August. The disappointing results (most analysts had expected at least 0.1% growth in these metrics) combined with slightly lower oil prices are putting downward pressure on the currency.
EURUSD: The euro is trading higher with stronger-than-expected manufacturing activity out of France and Germany.
GBPUSD: The pound is diving after Boris Johnson’s comments on a swifter-than-expected EU exit.
AUDUSD: The Aussie dollar is down with no new data out.
USDCAD: The Canadian dollar is falling as retail sales and consumer inflation readings missed expectations.