Home Daily Commentaries Break down in US-China talks?

Break down in US-China talks?

Daily Currency Update

GBP - British PoundIt seems sterling traders believe Johnson did enough to marginally win the debate yesterday as GBP rallied slightly after the election. According to a poll released by YouGov, Johnson won the debate by 2% (51%-49%). Voters believed that Johnson had slightly more clarity around his Brexit plans and Corbyn was more elusive on his position. Johnson avoiding any real slip up seems to be mission complete as he keeps is ground in the popularity polls. GBP/USD is now trading at 6-month highs.

Key Movers

The USD performed well on Wednesday evening after the FOMC economic outlook was more optimistic-than-expected. The minutes explained the reasoning behind the back-to-back easing. The Fed claimed it was necessary due to global growth risks and trade uncertainty, however that no other easing will be necessary. It seems as though the US is currently happy with their governmental policy and appreciate that relative to other nations, the slowdown is yet to really affect the US.The US gains were eroded this morning after sources claim that a US-China trade deal is unlikely this year, shattering hope for major USD gains before the New Year. ECB monetary policy minutes released later today.

Expected Ranges

  • GBP/USD: 1.2885 - 1.3005 ▲
  • GBP/EUR: 1.1625 - 1.1750 ▲
  • GBP/AUD: 1.8945 - 1.9060 ▲