Daily Currency Update

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Sterling quiet as Brexit decision lingers

GBP - British Pound

Yesterday the three day process to establish if Boris Johnson's decision to prorogue Parliament was lawful began with proceedings set to run until Thursday. The pound is largely ambivalent towards the Supreme Court shenanigans at the moment with sterling attempting to break through 1.2500 against the USD overnight before retracing back down.

Elsewhere, Labour leader Jeremy Corbyn announced that he would give the UK a final say on Brexit offering a 2nd vote. The ballot would be a choice between a Labour negotiated Brexit deal or remaining in the EU according to the opposition leader.

Key Movers

All eyes in the market are firmly on the Federal Reserve tonight who are expected to cut their interest rates by another 25 basis points whilst also not committing to any further cuts for the time being. In many ways there is a significant risk here for investors and the USD with USD/JPY trading at one month lows but the chances of a 50 basis point cut swinging wildly over the last 4 weeks from over 40% to 0% and now back around 15%. Either way, whatever happens President Trump is certain to offer his commentary on Twitter.

In Europe German investors updated the market through the ZEW Economic survey and whilst their future outlook has improved slightly, the current conditions begin to deteriorate due to the usual concerns over Brexit and the US-China trade war.

Expected Ranges

GBP/USD: 1.2420 - 1.2500 ▼

GBP/EUR: 1.1210 - 1.1310 ▼

GBP/AUD: 1.8100 - 1.8260 ▲

GBP/NZD: 1.9650 - 1.9720 ▲

GBP/CAD: 1.6440 - 1.6580 ▲