The pound is surging on investor hopes that the UK may have a better chance of getting preferential access to the European Union’s single market after next year’s Brexit event officially kicks off. This comes after Brexit Secretary David Davis said the UK would consider making contributions to the EU to secure access to the single market. On another note, November’s UK manufacturing activity results are set to come out tomorrow morning.
The euro is also up against a weaker US dollar as Eurozone manufacturing activity came in line with expectations. Tomorrow morning we’ll see Portugal’s unemployment rate and the Eurozone’s producer inflation results for October.
Stateside, the US dollar is tumbling as this week’s initial and continuing jobless claims rose more than expected, signaling a softening labor market. The coveted non-farm payrolls and wage data for November will finish out the week tomorrow morning.
To our north, the Canadian dollar is up as oil prices surge past $50 per barrel. Investors are waiting on Canada’s manufacturing activity for November set to come out this morning.
To the East, the Japanese yen is recovering against the dollar, taking a break from its multi-week slide. The Australian dollar is climbing after last night’s strong manufacturing report out of China (the country’s largest trading partner). Investors are awaiting tonight’s retail sales data for October for another read on the Australian economy.
EURUSD: The euro is up against a weaker dollar as Eurozone manufacturing results met expectations.
GBPUSD: The pound is climbing after upbeat comments from Brexit Secretary David Davis.
AUDUSD: The Aussie dollar is up after last night’s strong manufacturing report from China.
USDCAD: The Canadian dollar is up as oil prices continue to rally.