US election comes into focus
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Daily Currency Update
Yesterday, Europe released manufacturing PMI data from several key locations. Spain was the only area expected to report above the 50.0 threshold, which indicates expansion. The results showed a strong start to the final quarter of the year, with operating conditions improving to their highest level in over two years. Spain's PMI exceeded forecasts, coming in at 54.5. Other European locations produced mixed results, with the overall European PMI slightly above expectations at 46.0.Overnight, the Reserve Bank of Australia decided to keep its interest rates steady at 4.35%. Despite ongoing signs of weak demand, inflationary pressures remain a significant concern for the central bank.
In the currency market, GBP/USD has traded within a narrow range over the past 24 hours, fluctuating between 1.2940 and 1.3000. GBP/EUR also experienced limited movement, ranging from 1.1890 to 1.1930. Meanwhile, GBP/AUD has declined, starting the day above 1.9700 and opening closer to 1.9600. EUR/USD opened just under 1.0900.
Key Movers
Today is the U.S. Election Day, and many Americans will head to the polls to cast their votes in the presidential election. The race between Republican Donald Trump and Democratic rival Kamala Harris remains tight, especially in critical battleground states, leaving the outcome uncertain. Financial markets are closely watching the results, as the winner's policies will significantly impact securities, commodities, and currency markets. Over the past 24 hours, the USD has traded within a narrow range against both the GBP and EUR, but the election outcome is expected to test the recent support and resistance levels of each currency pair.Expected Ranges
- GBP/USD: 1.2680 - 1.3210 ▲
- GBP/EUR: 1.1780 - 1.2030 ▲
- GBP/AUD: 1.9450 - 1.9840 ▼
- EUR/USD: 1.0730 - 1.1150 ▲