Daily Currency Update

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Queen's Speech and Impeachment

GBP - British Pound

UK headline CPI data came in slightly above expectations at 1.5% yesterday - a positive day of data has seen the pound start the day close to yesterday’s opening levels. GBP/EUR is currently trading at 1.1780, whilst GBP/USD is trading is 1.3105.
The Bank of England meet at 12pm today. With no change to interest rates expected, the focus will be on any rhetoric around Brexit off the back of last week’s general election result, and the news this week that Boris Johnson plans to block any extension to the transition period beyond December 2020.
Additional focus will also be on how many members of the MPC vote for a rate cut.
Queen Elizabeth will make a speech in parliament today, announcing Prime Minister Boris Johnson’s legislative agenda after his election win. The government will use this opportunity to set out their plans for the coming year and, given how reactive the pound has been to political sentiment, there could be some interest in currency markets.
UK Retail sales figures for November were released at 9.30am – the expectation was for an increase of 0.3% in sales, however the figure came in well under at -0.6% which served to immediately weaken the pound.

Key Movers

Perhaps the biggest news over the past 24 hours comes from the US, where The US House of Representatives voted to impeach President Donald Trump, accusing him of misuse of power and obstruction of Congress. A trial is set to take place in the Senate in the New Year, however, given the Republican Party majority there, it is highly unlikely that the president will be removed from office when senators cast their votes.
The US Dollar initially dipped against most of its major counterparts off the back of this news but has since stabilised.
Whilst the focus in the US will no doubt return to US/China trade discussions, the impeachment case could play a bigger role in 2020 and may put pressure on President Trump's re-election campaign.
Little to no data in the Eurozone today.

Expected Ranges

GBP/EUR: 1.1720 - 1.1800 ▼

GBP/USD: 1.3050 - 1.3130 ▼

GBP/AUD: 1.90 - 1.91 ▼