Public Opinion Survey Drives Sterling Momentum, with the ECB and Trade also in The Spotlight
The Pound makes an early move, supported by the latest opinion polls. The ECB Financial Stability Review and Trade will also have a major influence.
Earlier in the Day:
There are no material stats to provide direction through the early part of the day.
The lack of stats leaves geopolitics to provide direction through the session.
News from the U.S of constructive talks with China over the weekend was not enough to ease demand for the safe havens.
Updates from talks have been mixed from Washington and Beijing of late, with Trump’s unwillingness to rollback tariffs and demand for China to spend $50bn on U.S agri key issues for Beijing.
For the Majors
The Day Ahead:
For the EUR
While there are no stats, the ECB is scheduled to release its Financial Stability Review that will garner plenty of attention.
The markets will be looking for guidance on monetary policy, with the review the first under Lagarde’s watch.
Geopolitical risk will continue to provide direction on the day, with UK politics and trade in focus.
For the Pound
It’s also a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction.
The lack of stats leaves the Pound firmly in the hands of UK politics and the general election opinion polls.
From the weekend, opinion polls reflected a widening in support for the Tories, which is considered Pound positive.
At the time of writing, the Pound was up by 0.16% to $1.2918.
Across the Pond
It’s a quiet day on the economic calendar. There are no material stats due out of the U.S to provide the Dollar with direction.
The lack of stats leaves the Greenback in the hands of the U.S administration for the day.
Expect updates from the ongoing U.S – China trade talks to provide direction.
Last week, we saw the equity markets respond positively to Thursday’s updates, while the FX world decided otherwise.
With Beijing continuing to raise concerns over the issue of tariffs and demand to spend $50bn on U.S agri, a phase 1 agreement is yet to be assured.
The Dollar Spot Index fell by 0.36% last week, with pressure coming off the back of negative chatter on trade…
For the Loonie
It’s also a quiet day on the economic calendar. The lack of stats leaves the Loonie in the hands of risk sentiment throughout the day.
Updates from Beijing and Washington on trade talks and influence on crude oil prices will likely have the greatest impact.
Following OPEC’s favorable monthly report last week, progress on trade talks is a must for the optimism over demand for next year to continue.
The Loonie was up by 0.02% to C$1.3221, against the U.S Dollar, at the time of writing.