MARKET DEVELOPMENT – AUD/USD Bounces Back, GBP/USD Selling Persists
AUD: A welcome and much needed surprise for the RBA following better than expected jobs data overnight. The unemployment rate dropped 0.1ppt to 5.2% against expectations to remain at 5.3%, while the headline rose by 39.9k, above consensus for 14k. Consequently, the Australian Dollar is among the outperformers in the G10 complex with AUDNZD also looking to have found an interim bottom. That said, while this may have given the RBA a little room to breathe, a risk of a February 2020 rate cut remains.
GBP: The Bank of England left the bank rate unchanged as expected with a 7-2 vote split. While the message had been much the same as the November meeting, the BoE seems slightly optimistic, having stated that global growth has begun to show tentative signs of a recovery. However, with regard to the election, the BoE highlighted that it was too early to assess the economic impact and therefore maintain the wait and see stance (full analysis). That said, GBP has shown little signs of reversing its post-election pullback as the continued long liquidations puts GBP/USD on a path to test the 1.3000 handle.
Source: DailyFX, Refinitiv
Economic Calendar (19/12/19)
Source: DailyFX,
WHAT’S DRIVING MARKETS TODAY
- “GBPUSD whipsaws as MPC leave rates unchanged and signal economic recovery” by Daniela Sabin Hathorn, Analyst
- “Sweden's Riksbank Raises Interest Rates: EUR/SEK Downtrend Remains Intact” by Nick Cawley, Market Analyst
- “Gold Price Quiet for Now, Long-term Levels Set to Break Early Next Year” by Justin McQueen, Market Analyst
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
