On 13 June, the UK government revealed legislation that would allow it to scrap parts of the Northern Ireland protocol.
- UK mortgage data to boost GBP?
- Fed comments fail to shore up US dollar
- Italian politics in focus
Pound could extend gains after mortgage data
Brexit speculation drove pound volatility last week, with hopes of a potential breakthrough sending Sterling higher.
July’s BBA mortgage approvals data could offer the pound a fresh leg up against its rivals.
Evidence that the housing market strengthened at the end of the second quarter, in spite of political anxiety, could extend the uptrend of GBP exchange rates.
Weaker consumer confidence set to dent US dollar
The mood towards the US dollar soured after Federal Reserve Chair Jerome Powell’s comments on Friday.
USD exchange rates could come under further pressure on the back of August’s consumer confidence index.
Signs that the ongoing US-China trade spat are damaging domestic confidence would be USD-negative.
Euro remains vulnerable to signs of economic weakness
Hopes that Italy could potentially avoid another general election helped to shore up the euro ahead of the weekend.
However, the current volatility of Italian politics could still drag on the single currency for some time to come.
Anxiety over the Eurozone’s economic outlook also looks set to persist in the days ahead, to the detriment of the euro.
EUR exchange rates are likely to trend lower unless domestic data impresses.
Tuesday, 27th August 2019
09:30 GBP BBA Loans for House Purchase
15:00 USD Consumer Confidence 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)