After soaring in response to the Conservative’s decisive election victory the pound quickly began shedding ground through Friday’s session.
- UK manufacturing PMI and polling figures weaken GBP
- Euro under pressure as German manufacturing slowdown continues
- Australian dollar bolstered by RBA decision
Signs of Labour narrowing the gap leave GBP struggling
The pound faltered on Monday in response to polling figures printed over the weekend, which suggested that Labour is closing the gap with the Conservatives.
This stoked concerns that the UK could be heading towards another hung parliament and saw investors shy away from Sterling.
Adding to the pressure on GBP exchange rates was the publication of the UK’s latest manufacturing PMI, which revealed UK factories are slashing jobs at their fastest pace in seven years.
Political developments will remain in focus today but the UK’s construction PMI will also be of interest. Another contraction in construction activity in November is likely to drag on Sterling.
Eurozone producer price index could weigh on euro
Data published yesterday showed the German manufacturing sector delivering its strongest performance in five months, but the mood towards the euro remained muted.
With the Eurozone’s powerhouse economy still experiencing a protracted manufacturing slowdown investors saw little reason to favour the single currency.
EUR exchange rates could come under additional pressure this morning if October’s Eurozone producer price index data weakens as forecast.
Australian dollar soars after interest rate decision
The Australian dollar advanced overnight as the Reserve Bank of Australia (RBA) delivered its final interest rate decision of 2019.
The central bank left interest rates on hold and suggested downside risks are weakening, lowering the odds of further rate cuts in 2020.
AUD investors will now be looking ahead to Australia’s latest GDP figures.
Tuesday, 3rd December 2019
09:30 GBP Construction PMI
10:00 EUR Eurozone Producer Price Index
21:30 AUD Services PMI
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)