Underlying political concerns continue to have a negative impact on Sterling.

The Euro was undermined on Friday by weak PMI data with fresh 4-year lows in business confidence reinforcing growth concerns.

The dollar secured support from fresh concerns surrounding European currencies and firm retail sales data with the dollar index testing 19-month highs.

Global equities continued to decline on Friday as global growth concerns hurt sentiment, although markets held steady on Monday.

Oil prices were also hampered by global growth concerns and a solid dollar tone.

Cryptocurrencies remained under pressure with fresh 15-month Bitcoin lows before a slight recovery on Monday.

Sterling lost ground ahead of the New York open on Friday with underlying political concerns continuing to have a negative impact. The weak Euro-zone PMI data also had a wider negative impact on European currency sentiment.

EU Council President Tusk stated that he had no mandate to re-open the Brexit Withdrawal Agreement and, although officials were generally supportive of Prime Minister May, there was also an element of criticism that May had not been more specific over her demands. The slide in global risk conditions was also a factor undermining UK currency support. EUR/GBP made limited net gains, although there was resistance near 0.9000 while GBP/USD hit lows below 1.2550.

Increased speculation that a second referendum could be the only way to break parliamentary deadlock provided some Sterling support, although Prime Minister May firmly rejected the possibility and the currency failed to make significant headway as GBP/USD traded below 1.2600 with EUR/GBP near 0.8985.

Weak Visa spending data and a decline in the Rightmove house-price index reinforced concerns over a weak short-term economic performance, although politics dominated.

Economic Calendar

10:00Euro-Zone Core CPI (Y/Y)(NOV 01)1.00%1.00%
10:00Euro-Zone CPI (Y/Y)(NOV)2.00%2.00%
10:00Euro-Zone CPI (M/M)(NOV)-0.20%0.20%
10:00Euro-Zone Trade Balance(OCT)13.1B
11:00GBP CBI Industrial Trends Orders (DEC)610
11:00German Buba Monthly Report
13:30NY Empire State Manufacturing Index(DEC)21.123.3
13:30CAD Foreign Securities Purchase(OCT)6.20B7.70B
15:00NAHB Housing Market Index(DEC)6160
21:00USD TIC Net Long-Term(OCT)30.8B

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.