The Pound has continued to show a strong hand during the early part of the trading week, following its positive strides against both the EUR and USD last week.

Sterling hit an eight-and-a-half month high against the Euro towards the end of last week, whilst it continues to find plenty of support against the USD around 1.30.

In fact, Sterling is enjoying an upturn in support against the majority of major currencies at present, as the UK gears itself for the upcoming general election on December 12th.

The turnaround in fortunes for the Pound seemed to stem from the removal of a potential “no deal” Brexit, which was clearly identified as a major market concern.

Sterling Blip following Polls tightening up

There was certainly a direct correlation between the rising threat of a “no deal” scenario and the pressure it put on the Pound when it was seemingly driven as a potential, if not necessarily likely outcome, to the ongoing Brexit saga.

Whilst the bookmakers are still favouring a Conservative majority as the most likely outcome for the election at 2/5 on, the probability of another hung parliament remains at 2/1. This may, in many people’s minds, not reflect the current standpoint in much of the media’s coverage of late.

In other news, Labour leader Jeremy Corbyn faced some awkward questions on yesterday’s This Morning show, over his ongoing row with the Jewish community in regards to comments he made back in 2018.

Whilst he eventually did in fact say sorry, it wasn’t received as positively by many senior Jewish figures, who felt it was too little too late.

US Dollar On The Back Foot, as President Trump's Impeachment Hearing Continues

GBP has remained well supported against the USD this week, trading just below 1.30 this morning ahead of the opening of European trading.

1.30 is historically a key benchmark for the GBP/USD pair, and as such may continue to provide some levels of resistance against any further advancement for Sterling this week.

However, the current slowdown in GBP’s upward spike is unlikely to dampen investors' confidence a great deal, with the Pound trading at some of the best levels we’ve seen in the last 18 months.

Could the US Dollar come under selling pressure?

In other news, President Donald Trump’s impeachment hearing continues, with the outcome of this likely to have a significant impact on Trump's chances of winning a second term at next year's Presidential elections.

The latest report does not make for good reading for the under-fire President, with a panel leading the enquiry into the impeachment claiming that the evidence against Trump is “overwhelming”.

What impact this may ultimately have on the USD value is difficult to predict, but it is potentially another negative blot on the President's tenure, and one of which may yet have an impact on Trumps ability to lead the US. Thus there could be negative knock-on effects for the economy and USD, along with President Trump himself.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.