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Terror attacks in Spain but pound remains weak

currency-newsTerror attacks in Spain but pound remains weak
Two deadly terror attacks in Spain on Thursday evening unsettled the markets on Friday, as did further chaos in the US administration. With no economic data on offer, the pound weakened against the euro, stayed soft versus the US dollar and tumbled against the commodity currencies.

The euro is the only major currency against which the pound is making gains this morning, and very minor ones at that. GBP/EUR has risen to €1.0958, while GBP/USD is already down -0.2% to $1.2850. Sterling is holding just below opening levels against the commodity trio, with GBP/AUD at AU$1.6233, GBP/NZD at NZ$1.7580, and GBP/CAD at C$1.6195.

A lack of data from all quarters today is likely to leave the long-term outlook for the pound in focus, which may not benefit GBP.

What’s been happening?

There was no UK data released on Friday and so the pound was left weak.

The euro was on mixed form, in part because the markets were rocked by the tragic events that took place in Barcelona on Thursday. 13 people were killed and around 100 injured after terrorists drove a van into the busy La Rambla street. Another attack in the same style injured five people and killed one woman in the town of Cambrils.

Softness in the US dollar helped to support the euro, causing GBP/EUR to slide lower.

The US dollar was shaken by the unsettling news that President Donald Trump had abandoned his plans to form an Advisory Council on Infrastructure, days after he was forced to disband his other councils - on manufacturing and strategy & policy - following an exodus of CEOs.

Trump’s infrastructure panel was the result of an executive order signed in July, but his plans have been left in tatters after his response to the events in Charlottesville saw business leaders withdrawing their support.

It seems increasingly unlikely that Trump will implement the vast infrastructure and spending plans that he had promised on the campaign trail. However, surging consumer confidence figures for August from the University of Michigan undermined GBP/USD and the pairing fell back to opening levels towards the end of the day.

What’s coming up?

There is no data set for release from either the UK, the Eurozone, or the US today. This means the pound, euro, and US dollar will be left trending based upon the long-term outlooks for each economy, interest rate predictions for the Bank of England (BoE), the European Central Bank (ECB), and the Federal Reserve, and demand or aversion for the commodity correlated currencies.

We’re here to talk currency whenever you need us, so get in touch if you want to know more about the latest news or how it could impact your currency transfers.
Currencies Direct

Currencies Direct

Currencies Direct is one of Europe's leading non-bank providers of currency exchange and international payment services. Since we were formed in 1996, we've maintained our focus on providing innovative foreign exchange and international currency transfer services to corporations of all sizes, online sellers and private individuals. We have also expanded our services to provide dynamic and pioneering "business to business" solutions to help companies, tier 2/3 banks and other non-bank financial institutions to process their international payments. Our headquarters are in the City of London (United Kingdom) and we have operations in continental Europe, Africa, Asia, and the United States. Currencies Direct is jointly owned by private equity firms Palamon Capital Partners and Corsair Capital.

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