Sterling dipped by a quarter of a percent against the dollar and was marginally weaker against the euro ahead of a government budget statement expected to deliver only marginal additional support for an economy facing more Brexit-based volatility next year.
- Philip Hammond to Ease Cuts as Watchdog Reveals Size of Brexit Black Hole – The Telegraph
- British Pound Tests Downside Against Dollar, Euro and Other Currencies Ahead of First Post-Brexit Budget – Exchange Rates
- Pound Declines Against Dollar and Euro Ahead of Autumn Statement – International Business Times
A second straight day of sudden moves in the pound underlined why investors and traders are wary about betting on a clear trend for the currency until there is further clarity over the shape Brexit will take.
Sterling fell back to around $1.24 with illiquid trading conditions helping the pound reverse around half of a one percent rise the previous day on the view that Brexit will be slower – and softer – than had been feared.
Strategists have rushed to slash their pound forecasts since the UK voted to leave the European Union, but one fund manager is bucking the anti-sterling trend.
The dollar steadied near a recent 13½-year peak, taking a breather ahead of the US Thanksgiving holiday after surging on expectations that a Donald Trump administration will boost growth and push up US interest rates.
US and European shares rose with Wall Street’s three main stock indexes hitting record highs for a second straight day, on expectations that markets would benefit from US President-elect Donald Trump’s policies.
With the victory of President-elect Donald Trump rejuvenating the so-called divergence trade, calls for the euro to sink to parity versus the US dollar are swelling.
The rand is rallying for the second day in a row after South Africa’s energy ministry unexpectedly deferred spending plans ahead of a series of key credit ratings decisions in the coming weeks.
China’s foreign exchange black market is booming.
The financial watchdogs of Finland and Denmark want the European Union to step in and address a gap in regulations that the two countries say has the potential to destabilize their markets as they lose control of the region’s biggest bank.
With the Turkish currency at its lowest on record against the dollar, monetary policy may have to make an abrupt turn towards tightening this month in a bid to protect the lira, according to analysts.
Extending the European Central Bank’s bond-buying programme may not affect the Czech central bank’s decision on when to remove its cap on the value of the crown, if inflation is headed back to or slightly above target, Czech Governor Jiri Rusnok said.
Morgan Stanley has reportedly followed Goldman Sachs and Santander in leaving the R3 blockchain venture.
Sterling could be back on the up, according to wealth managers at UBS who believe the pound is unlikely to fall any further, and could even bounce all the way back to $1.55 in the years ahead.
The euro is likely to hit one for one against the dollar ahead of France’s presidential elections next spring, according to investment bank Société Générale, which expects the single currency to weaken on the back of heightened political threats and more central bank stimulus measures in the eurozone.
Most emerging Asian currencies eased as the dollar hovered around a 13½-year peak and as expectations grew that the Federal Reserve may raise interest rates further next year after an expected hike in December.
Demand on the foreign exchange markets for the British pound rates has remained volatile ahead of the Autumn Statement, while the New Zealand Dollar has struggled to capitalise on solid card spending figures.
The Canadian dollar weakened against its US counterpart, with one strategist warning a preoccupation with oil ahead of a key OPEC meeting was obscuring loonie vulnerability to wider yield spreads between the two countries’ bonds.