Up to 75% of businesses in the UK are currently unprepared for Brexit, according to a recent study by the Institute of Directors.
- Pound maintains positive footing as election day dawns
- Euro softens as markets brace for ECB rate decision
- US dollar stumbles after rate decision
Pound static as the UK takes to the polls
Pre-election jitters failed to knock the pound off its positive footing yesterday, even as opinion polls pointed towards a narrower Conservative lead.
GBP exchange rates are likely to trade in a narrow range today as markets wait for the release of the exit poll.
The outcome of the election could trigger some significant pound movement before the weekend.
Euro weakens in anticipation of ECB rate decision
Support for the euro proved limited on Wednesday thanks to a lack of fresh Eurozone data releases.
The euro was also feeling the pressure ahead of today’s European Central Bank (ECB) interest rate decision.
While no change in monetary policy is expected today the tone of the accompanying commentary could weigh on EUR exchange rates.
As long as the central bank appears set to maintain its cautious policy outlook in the months ahead EUR exchange rates will remain on the back foot.
FOMC interest rate decision sends USD lower
The US dollar tumbled yesterday following the Federal Reserve’s latest policy meeting after Fed Chairman Jerome Powell reiterated his stance that there would need to be a significant uptick in inflation for the bank to think about tightening monetary policy again.
This indicated that borrowing costs are likely to remain on hold for the foreseeable future.
Today’s only US release of note is second tier PPI figures. The report may exert some modest pressure on the US dollar if producer prices are shown to have slowed last month.
Thursday, 12th December 2019
12:45 EUR European Central Bank Rate Decision
13:30 USD Producer Price Index
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)