Pound Weakened Again by Continued Uncertainty
27 September 2019

Sterling was again under the pump yesterday, trending lower given the continued uncertainty around the UK political climate.

Currency the Pound is slightly down today with GBP/EUR is trading €1.1250 down 0.31%. Against the USD it is trading at $1.2301 down 0.21%. This downward trend continues with the CAD, USD, AUD and CHF.

Week in Review

Following the Supreme Court ruling, Sterling fell upon parliament returning, in what was another farcical week for British politics.

As calls for his resignation continue to grow, Prime Minister Boris Johnson has reiterated that he is still committed to the UK leaving the EU on the 31st of October, regardless of whether a deal had been negotiated.

He also has recently challenged opposition parties to hold a confidence vote in the government to clear the way for a general election. Although opposition parties are demanding a no-deal Brexit is taken off the table before this happens. Currently, much like everything in British politics, is a stale-mate.

Abroad, the US-China trade speculation has impaired risk appetite, boosting the US dollar and weakening currencies like the AUD and NZD.

Next Week at a Glance

As has been the case for what seems like an eternity, UK politics remains the driving for behind Sterling exchange rates, and this will continue until some certainty comes out of Westminster.

In the event of a general election, expect major volatility around the pound.

UK politics remains the driving force behind GBP exchange rates, and investors will be paying close attention to the latest headlines.

Any confirmation that the UK will be heading to the polls could trigger Sterling volatility.

The UK GfK Consumer Confidence Index was also released overnight increasing by two points to -12 this month, with all five of the measures used to determine the overall index increasing as well. Although this has been deemed to not have much impact on the Pound, given the more pressing issues affecting the currency.

USD is predicted to maintain an upward bias if risk-off sentiment prevails, but any progression in impeachment talks could lead to more volatility.

Pound Weakened Again by Continued Uncertainty
27 September 2019

Sterling was again under the pump yesterday, trending lower given the continued uncertainty around the UK political climate.

Currency the Pound is slightly down today with GBP/EUR is trading €1.1250 down 0.31%. Against the USD it is trading at $1.2301 down 0.21%. This downward trend continues with the CAD, USD, AUD and CHF.

Week in Review

Following the Supreme Court ruling, Sterling fell upon parliament returning, in what was another farcical week for British politics.

As calls for his resignation continue to grow, Prime Minister Boris Johnson has reiterated that he is still committed to the UK leaving the EU on the 31st of October, regardless of whether a deal had been negotiated.

He also has recently challenged opposition parties to hold a confidence vote in the government to clear the way for a general election. Although opposition parties are demanding a no-deal Brexit is taken off the table before this happens. Currently, much like everything in British politics, is a stale-mate.

Abroad, the US-China trade speculation has impaired risk appetite, boosting the US dollar and weakening currencies like the AUD and NZD.

Next Week at a Glance

As has been the case for what seems like an eternity, UK politics remains the driving for behind Sterling exchange rates, and this will continue until some certainty comes out of Westminster.

In the event of a general election, expect major volatility around the pound.

UK politics remains the driving force behind GBP exchange rates, and investors will be paying close attention to the latest headlines.

Any confirmation that the UK will be heading to the polls could trigger Sterling volatility.

The UK GfK Consumer Confidence Index was also released overnight increasing by two points to -12 this month, with all five of the measures used to determine the overall index increasing as well. Although this has been deemed to not have much impact on the Pound, given the more pressing issues affecting the currency.

USD is predicted to maintain an upward bias if risk-off sentiment prevails, but any progression in impeachment talks could lead to more volatility.

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