Daily Currency Update

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Fisheries remain a Brexit roadblock

GBP - British pound

GBP moved on the back of Brexit headlines again yesterday as traders look to take advantage of short-term spikes in the market. Unfortunately, it seems a lot of the headlines and rumours are hearsay, leaving the market erratic and directionless. The UK and EU have no doubt made significant progress in this round of negotiations, however, are still yet to agree on fisheries and common ground legislation.

Bank of England (BoE) governor, Andrew Bailey, gave some insight into the health of the UK economy, which has slightly aided the pound on Thursday morning. He suggested that the ‘second wave’ of coronavirus will not have the same economic impact on the UK economy as the first. Following on, he stated that certain sectors in the economy needed increased support whilst some may fail to survive properly. Alongside this, he hopes there is a Brexit deal however appreciates that post-Brexit transition will be tough. Bailey continues to speak throughout the morning.

Key Movers

The US Federal Open Market Committee (FOMC) meeting minutes were released on Wednesday. The meeting was overall what the market expected with The Federal Reserve System (Fed) officials voicing their concern over the potential disaster if fiscal aid disappeared. They also spoke on the interest rates and suggested that there would be no tampering until inflation was at 2% for an extended period of time. They discussed how GDP recovery had been rapid, however this was due to the large stimulus injection, which highlights just how important it is for the US economy. Biden is still ahead in the presidential polls; however, Trump is certainly gaining ground. The only real market moving data released today is the US employment claims.
New Zealand PM Jacinda Ardern looks set to win the upcoming election, as she sits with a comfortable lead in the polls.

Expected Ranges

GBP/USD: 1.2910-1.3070 ▲

GBP/EUR: 1.0940-1.1090 ▲

GBP/CAD: 1.7040-1.7330 ▲

GBP/AUD: 1.8020-1.8215 ▲