Pound steady, US confidence data could weaken USD

Philip McHugh August 27th 2019 - < 1 minute read

  • 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.
 
 
Upcoming Data:
 
Tuesday, 27th August 2019
09:30 GBP BBA Loans for House Purchase
15:00 USD Consumer Confidence Index
 

Written by
Philip McHugh

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