Daily Currency Update

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Sterling stalls ahead of Leadership debate

GBP - British Pound

GBP/USD is holding steady around the 1.3150 handle with less than a week until the UK General Election. Tonight sees PM Boris Johnson and Labour leader Jeremy Corbyn go head to head in a BBC debate which may go some way to convince undecided voters which box to tick on Thursday. Obviously, Brexit will be one of the main subjects of discussion but law and order has come back the fore after last week's attacks on London Bridge so expect public spending to be another hot topic of debate.

A strong performance from the PM will likely lead to a sterling rally on Monday as markets price in further a Conservative majority however any slip ups by the gaffe-prone Johnson could rattle the pound. In a likely wise move he has also yet to confirm whether he will put himself before the BBC's Andrew Neil for a 30 minute interview as all other major party leaders have. Neil, himself issued a to the camera request to the PM to make an appearance before the election, however the fact that he is yet to commit, and will likely swerve the invite, has drawn criticism from those who have subjected themselves to a grilling from Neil.

GBP/EUR trades at 1.1830.

Key Movers

Today is a crucial day for forex markets as the monthly jobs report is issued from the States. Data this week from the States has been poor with Services, Manufacturing and ADP employment data all missing target. The consensus is for 181k jobs to have been added to the workforce last month, unemployment to hold at 3.6% and hourly earnings to tick up to 0.3% from 0.2% m/m. Should we see these missed or a mixed bag then it should add to the consensus that the US economy is starting to crack under the pressure of a global slowdown brought upon it by US President Donald Trump's trade offensive against China.

On the trade front Trump is again showing his unpredictability as he stated trade talks with China were "moving right along" only two days after pouring cold water on the idea we may see phase one of a deal or at least of a delay in tariffs rising by the 15th December which is when the next round of hikes is due. Equity markets around the world are higher as result with both the Aussie and Kiwi dollars also ticking up.

There is little news from the Eurozone until Thursday's policy decision from the European Central Bank, which will be the first chaired by new bank chief Christine Lagarde. No change in policy is expected so it will be the press conference which will draw the most column inches. USD/JPY 108.55 with EUR/USD hovering around 1.11.

Expected Ranges

GBP/USD: 1.3050 - 1.3205 ▲

GBP/EUR: 1.1740 - 1.1870 ▲

GBP/AUD: 1.91 - 1.9270 ▲

GBP/NZD: 1.9920 - 2.01 ▼

GBP/CAD: 1.7220 - 1.7380 ▲