GBP/USD Eyes Final MRP Poll, South African Rand (ZAR) Collapses - US Market Open
MARKET DEVELOPMENT – GBP/USD Eyes Final MRP Poll, South African Rand Collapses
GBP: A slew of weaker than expected data points from the UK failed to curtail the Pound’s march higher with eyes on the final YouGov MRP poll at 2200GMT (prior MRP poll showed Conservatives winning 359 seats). The UK economy flatlined in October, missing expectations for a 0.1% rise, this had been due to weakness in the manufacturing sector offsetting the growth in the services sector.
ZAR: The South African Rand has been the notable underperformer across the FX space with the currency dropping over 1% amid the continued concerns pertaining to Eskom load shedding. Late in yesterday’s session Eskom had surprised many by conducting a stage 6 load shedding process for the first, which in turn raises the risk that South African growth will be weaker going forward. Eyes on the pivotal 15.00 handle.
NOK: Weak session thus far for the Norwegian Krona following the weaker than expected Norges Bank Regional Network Survey. Consequently, NOKSEK printed fresh monthly lows at 1.0359. That said, seasonality factors also tend to weigh on the NOK in December, therefore we look for a NOKSEK reversal from the turn of the year following the Riksbank’s expected rate hike.
NOKSEK Tends to Bottom at the Turn of the Year
Source: DailyFX, Refinitiv
Economic Calendar (10/12/19)
WHAT’S DRIVING MARKETS TODAY
- “UK General Election Preview: Everything You Need to Know” by Justin McQueen, Market Analyst
- “Sterling (GBP) Analysis - GBP/USD Rally Continues on Latest Poll Boost” by Nick Cawley, Market Analyst
- “FTSE Technical Outlook – Selling Could Soon Bring Long-term Support into Play” by Paul Robinson, Currency Strategist
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.firstname.lastname@example.org
Follow Justin on Twitter @JMcQueenFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.