Sterling climbs off Junker comments
Friday 20 September, 2019
Daily Currency UpdateGBP - British PoundYesterday evening the pound demonstrated once again just how reactive it is towards Brexit comments and this time it was welcome words from EU Commission President Jean-Claude Junker who said that 'I think we can have a deal...because I don't like the idea of a no-deal". Sterlign rallied 0.7% pushing through GBP/USD 1.2500 in the aftermath. The pound is now touching two month highs and is certainly one of September's best performing currencies as it recovers from the lows of 1.1900.In contrast to an event that moves the pound, the Bank of England met yesterday but this was not a 'live meeting and they kept interest rates on hold at 0.75%. Encouragingly the Bank also stated that the UK would avoid falling into a recession this year with growth for Q3 expected to come in at 0.2%.
Key MoversThe end of the week is petering out slightly for currencies elsewhere, although the market is definitely bracing itself for next week where there is a raft of economic updates. Over the weekend investors will be keeping an eye out for any developments on the Iran-Saudi crisis especially as US Defence Secretary Mike Pompeo has been in Saudi Arabia all week discussing a response. This afternoon does see the release Eurozone consumer confidence, a survey of 2,300 consumers, which will be critical to see if the slowdown in manufacturing has had an effect on spending and outlook.
- GBP/USD: 1.2440 - 1.2580 ▲
- GBP/EUR: 1.1260 - 1.1380 ▲
- GBP/AUD: 1.8350 - 1.8500 ▲
- GBP/NZD: 1.9860 - 2.0000 ▼