• Hopes of Brexit agreement help pound
  • German industrial orders fall from prior
  • US government shutdown fears weigh on greenback

Sterling struggles on Brexit uncertainty

The pound continued to struggle against the dollar yesterday, losing over a quarter of a percent. Despite this poor performance against the dollar, the currency managed to gain marginally against the euro. A lack of economic data releases left the pound exposed to the continued volatility caused by Brexit. However, sentiment is beginning to rise that a resolution may be on the horizon which could see the pound gain some ground across the board.

This morning we have had the release of Halifax house price data, which came out better than expected, rising by 0.2% as opposed to falling the 0.1% that many expected. Off the back of this the currency has gained marginally. However, focus is likely to remain on the PM and her progress in negotiating an advantageous Brexit deal.

Euro largely steady as focus falls to wider markets

The single currency continued to go largely ignored yesterday, losing nearly a fifth of one percent against the dollar and falling marginally against the pound. A positive German industrial orders number failed to provide the currency with much support as investors looked to wider markets to drive price action.

This morning we have had the release of German industrial orders as well as French import and export data. While French imports rose moderately, the German industrial orders number fell 0.5%, a direct contrast to the expectation for a 2.3% rise. Despite this positive data the currency has failed to show any real signs of strength this morning, trading broadly flat against the pound and losing 0.15% against the dollar.

Dollar gains despite uncertainty

The greenback continued to perform well yesterday, albeit at a slower pace than earlier in the week. Against the pound the dollar gained over a quarter of a percent, and rose just shy of a fifth of one percent against the euro. This comes despite growing dissatisfaction with the US administration from the wider world. Positive ADP national employment and labour cost numbers provided the currency with support. Despite this positive data, pressure on the greenback increased as tension rose on President Trump’s decision to recognise Jerusalem as the Israeli capital, as well as the fear that the US government could be shut down if a budget cannot be agreed.

A lack of economic data releases today may see focus fall to wider markets. However, the release of non-farm payroll data will likely remain a key focus. With the expectation of a 60,000 fall, the dollar could suffer from wider pressure.

Comments are closed.

For all media and public relations enquiries, please contact:

Thank you

Thank you for signing up to receive EarthportFX news. You'll receive an email shortly to verify your email address and please follow the details within this.


Thank you

Thank you for verifying your email address. Your details have been added to our newsletter subscriber list!

BaydonHill is now EarthportFX

Baydonhill is now EarthportFX

More than just a new name, EarthportFX is now powered by the Earthport payment network.

Used by leading banks and ecommerce businesses; Earthport’s global network offers direct local payment capability in over 60 countries and access to the latest global payments technology.

Still with the same expert service and extensive currency capabilities, see how we go beyond FX.