The pound was mostly rangebound at the end of last week’s session in response to lingering Brexit uncertainty.
As the headline inflation rate eased from 1.7% to 1.5% in October this offered fresh cause for policymaker dovishness, boosting the risk of a 2020 interest rate cut.
However, GBP exchange rates soon returned to a positive footing thanks to the relative weakness of many of the majors.
Hopes that the UK could avoid another hung parliament in the upcoming December general election also helped to put a temporary floor under the pound.
With November’s CBI industrial trends orders index forecast to show a modest improvement on the month the mood towards the pound could pick up further on Tuesday.
If the economy appears on track to recover some of its lost momentum before the end of the year this is likely to give GBP exchange rates a lift.
However, any fresh signs of a slowdown in November’s manufacturing and services PMIs would leave the pound vulnerable to renewed selling pressure.
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)