After soaring in response to the Conservative’s decisive election victory the pound quickly began shedding ground through Friday’s session.
A surprise contraction in Eurozone construction output saw the euro stumble yesterday as confidence in the economic outlook received a fresh blow.
EUR exchange rates could face further downside pressure this morning if the European Central Bank’s (ECB) financial stability review proves negative.
Signs that the central bank is adopting a more cautious outlook would raise the risk of future monetary loosening, leaving the single currency exposed to selling pressure.
US dollar under pressure ahead of Fed meeting minutes
While October’s US housing starts and building permits figures showed a solid rebound, USD exchange rates remained on a weaker footing on Tuesday.
As market risk appetite picked up (fuelled by renewed hopes of US-China trade progress) the US Dollar struggled to find much support yesterday.
The US Dollar could come under further pressure tonight if the Federal Open Market Committee (FOMC) meeting minutes hint at future rate cuts.
Steady inflation unlikely to boost Canadian dollar
Although September’s manufacturing sales saw a smaller deterioration than forecast yesterday, the report failed to shore up the Canadian dollar.
As sales declined -0.2% on the month this still cast doubt over the resilience of the Canadian economy, limiting support for CAD exchange rates.
A steady reading from today’s headline consumer price index may not be enough to bolster the appeal of the Canadian dollar, but a surprise increase could prove CAD-supportive.
Wednesday, 20th November 2019
09:00 EUR European Central Bank Financial Stability Review
13:30 CAD Consumer Price Index
19:00 USD Federal Open Market Committee Meeting Minutes
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)