European sentiment undermined by political concerns with the Euro and Sterling losing ground.
Robust consumer confidence data maintained confidence in the US outlook with net US dollar gains to fresh 2-week highs.
European sentiment was undermined by political concerns with the Euro and Sterling both losing ground during Friday and failing to recover. The Australian dollar strengthened after the Liberal/National government secured an unexpected election victory.
Trade policies remained important with the removal of US steel tariffs on Canada underpinning the Canadian dollar. Equities were mixed amid on-going US-China tensions, although demand for the yen and Swiss franc declined slightly.
Oil prices were boosted by reports that OPEC would extend production cuts until the end of 2019 with Brent at 3-week highs
Sterling continued to lose ground ahead of Friday’s New York open as political factors remained dominant. The Labour Party confirmed formally that Brexit negotiations with the government had ended in failure. Government instability discouraged Labour from backing any agreement and both parties were worried that any deal would cause major internal party divisions.
The injection of further uncertainty undermined Sterling sentiment, especially with no clear route to securing a Brexit agreement and market concerns over a no-deal outcome increased once again which hampered Sterling.
GBP/USD declined to 4-month lows near 1.2720 and GBP/EUR has corrected mildly higher after reaching lows of 1.1378. Prime Minister May announced that an improved Brexit Withdrawal Agreement would be presented to parliament, although there was still strong scepticism that the deal would be approved. Gains in oil prices provided only slight Sterling support with the UK currency able to secure only a marginal recovery on Monday as political concerns persisted.
|07:00||EUR German PPI (Y/Y)(APR)||2.70%||2.40%|
|07:00||EUR German PPI (M/M)(APR)||0.20%||-0.10%|