Today’s Rates & Market News

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Today’s Rates

GBP>EUR – 1.1003

GBP>USD – 1.2542

EUR>USD – 1.1398

GBP>CAD – 1.7037

GBP>AUD – 1.7955

GBP>SEK – 11.377

GBP>AED – 4.6062

GBP>HKD – 9.7230

GBP>ZAR – 21.000

Today’s Calendar     

·         EUR    EU Leaders Special Summit 

·         CAD    Retail Sales (MoM)(May)     

·         USD    Michigan Consumer Sentiment Index(Jul)

 

Today’s Highlights

  • EUR Focus on weekly close & EU summit
  • GBP Mildly bid under
  • Gold Erases weekly gain on USD strength
  • China Unexpectedly strong growth not what it seems?

(https://frank-exchange.com/)

Markets

 GBP

Cable has settled near 1.2550-1.2600, showing little net change from week-ago levels although having seen some whippy price action in the interim. Cable printed a three-day low at 1.2520 yesterday, while EUR-GBP edged out a three-day high at 0.9096 (1.09794) before running out of upside puff, leaving Tuesday’s 17-day high at 0.9116 (1.0970) unchallenged. Expectations for EU leaders to green-light the proposed EUR 750 bln recovery fund at the EU leaders’ summit today has been a factor underpinning EUR-GBP recently. From here, analysts anticipate only limited upside potential for the pound, given the risk that trade discussions between the UK and EU continue without a breakthrough. Officials have continued to report that they remain deadlocked over key issues. While there have been reports of “landing zones” on difficult issues coming into view, there have also been reports that the UK government is planning free ports and competitive tax cuts, which would rule out any chance of a broad trade deal being made with the EU. Negotiations are continuing in Brussels and are scheduled to continue through to the end of the month before resuming on August 17th after the summer break. October is being touted as the deadline, with the UK scheduled to leave the EU’s single market at year-end. An update on this week’s round of talks is likely at some point today.

World

Currencies have hunkered down in narrow ranges, with the dollar and yen consolidating after rising against most other units yesterday. Global stock markets are lacking direction, too. The persisting pandemic remains a concern for investors, and even though the lack of fresh cases in many reopened countries which experienced pronounced infections (including to no-lockdown, no-mask Sweden) — pointing to herd immunity, with the 2020 virus/all-cause mortality curves now looking like nothing more than a bad respiratory illness season — is going largely unreported. Offsetting pandemic concerns are expectations for the U.S. and other countries to extend “the first wave” fiscal support packages before they expire, while EU leaders will later today meet to move the proposed EUR 750 bln recovery fund toward fruition. Among currencies, EUR-USD settled just above the three-day that was seen yesterday at 1.1370. USD-JPY plied a sub-20 pip range in the lower 107.00s, and EUR-JPY, other yen crosses, were similarly directionally challenged. AUD-USD held in a narrow range above yesterday’s three-day low at 0.6963. AUD-JPY did likewise. USD-CAD edged out a two-day high at 1.3589, extending a rebound from Thursday’s eight-day low at 1.3500. Front-month WTI crude prices remained in a narrow-range consolidation below the three-week high seen earlier in the week at $41.26. Highlights on the calendar today include eurozone June inflation and U.S. consumer confidence data, neither of which are likely to impact markets much. Market participants will also be watching the White House for a decision on whether President Trump will follow through on his threat to ban Chinese Communist Party members from travelling to the U.S.

XE Market Analysis Europe – 17th Jul 2020

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result.  Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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