Investors turn attention toward Osaka
Friday 28 June, 2019
Daily Currency UpdateGBP - British PoundAs the week pulls to a close there is no rest for investors with the G20 summit kicking off today and finishing tomorrow. A few years ago these summits may have been quiet affairs however investors are hoping that the US and China restart their negotiations. In the UK it was another quiet day, and we must not forgot about Theresa May who flew out to Japan today for one of her last state trips before stepping down as PM. Next week should be a bit busier for the pound with a host of PMIs set to be released but there will be a battle between this, the Tory election and the fallout from the G20 conference as to what drives sterling on Monday morning.
Key MoversFurther afield, yesterday saw a general move to riskier assets and currencies with the Aussie and New Zealand dollar both benefiting as a result. Both these currencies, which act as good indicator and proxy for investors' appetite for risk, surged yesterday with NZD/USD hitting a four month high. Fortunately the Aussie and Kiwi are also closely tied to the fortunes of China and clearly the mood yesterday from the market is that Trump and Xi could make progress this weekend in Osaka. However, from experience these events can offer a lot of promise and deliver little and don't be surprised if President Trump flies home on Sunday having attagonised India and Vietnam both of which have emerged on his radar. The big news from North America this afternoon will be Canada's GDP figures which could add further support to the surging Loonie which has been on a flier as of late due to trade talk optimism and a pick up in oil prices. Indeed USD/CAD has dropped to its lowest level in 4 months.
- GBP/USD: 1.2660 - 1.2730 ▲
- GBP/EUR: 1.1130 - 1.1210 ▼
- GBP/AUD: 1.8000 - 1.8120 ▼
- GBP/NZD: 1.8880 - 1.9020 ▼
- GBP/CAD: 1.6575 - 1.6640 ▼