MARKET DEVELOPMENT – GBP/USD Outperforms, EUR/USD Tests Support, AUD/USD Eyes RBA QE Talk
DailyFX 2019 FX Trading Forecasts
GBP: The Pound is notable outperformer in the G10 space with GBP/USD up 0.3%. Election polls over the weekend continued to show a sizeable lead for the Conservative party with the first seat projections of the campaign noted a 48-seat majority for the Tories. In turn, this has aided the Pound from Friday’s PMI led drop. Going forward, eyes will be on Wednesday’s YouGov MRP poll at 2200GMT, which had accurately predicted a hung parliament back in 2017.
EUR: The Euro is on the defensive to begin the week amid the pick up in the US Dollar, while maginally better German IFO data had been offset by relatively cautious comments from the insitute, which stated that industrial orders are still not satisfactory and export prospects have also darkened. Consequently, EUR/USD is testing support at 1.1000.
AUD: Despite equity markets pushing higher on US-China trade deal tailwinds, this has not spilled over into FX, with the Australian Dollar marginally lower for the session, having failed to breach the 0.6800 handle. RBA speeches are likely to dictate the Aussie in the next 24-hours with Deputy Governor Debelle scheduled to speak at 2350GMT, while RBA Governor Lowe is set to speak tomorrow on unconventional monetary policy at 08:15GMT. (RBA QE is a 2020 Risk)
Source: DailyFX, Refinitiv
Economic Calendar (25/11/19)
Source: DailyFX,
WHAT’S DRIVING MARKETS TODAY
- “US Dollar Buying Persists, CAD Longs Capitulate - COT Report” by Justin McQueen, Market Analyst
- “Bitcoin (BTC) Price Analysis: Slump Stalls, Outlook Remains Negative” by Nick Cawley, Market Analyst
- “EUR/USD: Downtrend Move Builds up Momentum - Euro vs USD Price Outlook” by Mahmoud Alkudsi, Market Analyst
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
