Conservative victory sends pound higher
Philip McHugh December 13th 2019 - < 1 minute read
- GBP broadly rallies as Conservatives secure majority
- Euro muted after ECB decision
- US dollar supported by trade news
Sterling storms higher after 2019 election results
The pound surged overnight, hitting a three-year high against the euro and an over one-year high against the US dollar.
Sterling jumped as investors reacted to the news that the Conservatives had claimed a convincing victory in the general election.
While Sterling is giving back some of these gains this morning, the currency remains up on yesterday’s levels.
The outcome of the election will continue driving GBP exchange rates as we head into the weekend.
Euro static after ECB decision
The European Central Bank’s (ECB) last interest rate decision of 2019 had little impact on EUR exchange rates.
The central bank left rates on hold, as expected, and new President Christine Lagarde asserted that she is neither a policy hawk nor a dove and will rather aim to be an ‘Owl’, ‘associated with a little bit of wisdom’.
In the week ahead the euro could fluctuate in response to the latest services and manufacturing PMIs for the Eurozone, as well as final Eurozone inflation figures and consumer confidence data.
US dollar bolstered by Trump tweet
The US dollar was offered some modest support yesterday amid renewed hopes for a US-China trade deal after President Trump claimed on Twitter that a he is ‘getting very close to a big deal with China’.
The latest US retail sales figures are due for release later this afternoon.
These may offer some support to the US dollar if sales growth accelerated in November as forecast by economists.
09:30 GBP BoE/TNS Inflation Next 12 Mths (NOV)
13:30 USD Advance Retail Sales