GBP - British Pound
GBP/USD slipped back under the 1.29 big figure late on Friday amid general dollar strength. The quid didn't get off to a particularly good start on the day either, following the release of weaker than expected UK PMI data; it reaffirmed how sluggish the UK economy really was and will likely only fuel sentiment that the Bank of England may have to cut rates soon.
But the pound is recovering this morning as various polls seem to suggest the Conservatives may get a majority in the upcoming election - the lead is between 10-19 points depending on the poll you're looking at. PM Johnson unveiled his party's manifesto yesterday too, promising not to raise income tax, national insurance or VAT. He also promised to complete a new trade deal with the EU by the end of 2020.
There isn't a lot of UK data on the docket for this week. Polling will likely dominate more and more as the week goes on. Month end flows may also play but generally speaking the pound should remain fairly stable and well bid above 1.28.
With it being Thanksgiving this Thursday and with US traders likely to take the Friday off as well, it will make for thin trading conditions by the end of the week and some potential volatility.
The US-China trade tiff continues in the meantime. While key negotiators have hinted that a phase 1 deal is very close to being signed, last week a Senate bill supporting the Hong Kong protesters raised concerns that underlying ideological differences will prevent an agreement being reached.
1.2850 - 1.2925 ▲GBP/EUR:
1.1680 - 1.1710 ▲GBP/AUD:
1.8850 - 1.9090 ▲GBP/NZD:
2.0000 - 2.0160 ▲