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Brexit and Economic Data to Drive the GBP and the EUR

By:
Bob Mason
Published: Oct 25, 2019, 01:17 UTC

The EU decision on the Brexit extension and talk of a general election are key drivers for the GBP, with stats to also influence the EUR.

Light Board

Earlier in the Day:

It was yet another quiet day on the economic calendar through the Asian session this morning.

There were no material stats to provide the majors with direction on the day. A lack of stats left the majors in the hands of geopolitics and economic data from the Eurozone and the U.S on Thursday.

For the Majors

At the time of writing, the Japanese Yen was down by 0.06% to ¥108.67 against the U.S Dollar, while the Aussie Dollar was up by 0.01% to $0.6820. The Kiwi Dollar was down by 0.05% to $0.6381.

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. October’s Ifo Business Climate Index figures are due out alongside November’s GfK Consumer Climate figures.

While consumer sentiment will have a material influence, the Ifo Business Climate Index will have the greatest influence on the day.

Outside of the numbers, expect any progress, or lack of, on Brexit and chatter on trade to also provide direction. The immediate area of focus is the pending approval for Britain’s extension request.

At the time of writing, the EUR was down by 0.01% to $1.1103.

For the Pound

It’s a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction.

A lack of stats leaves the Pound in the hands of the UK Parliament through the latter part of the day. The Pound could be in for a spin should the EU approve a shorter extension period…

At the time of writing, the Pound was down by 0.04% to $1.2846.

Across the Pond

It’s a relatively quiet day ahead on the economic calendar. Finalized October Michigan Consumer Expectation and Sentiment figures are due out late in the session. Barring particularly dire numbers, however, we would expect the numbers to have a muted impact on the majors.

Outside of the numbers, Brexit woes would be considered Dollar positive, while any negative chatter on trade would be considered Dollar negative.

The Dollar Spot Index was up 0.07% to 97.695 at the time of writing.

For the Loonie

It’s a quiet day on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of market risk appetite throughout the day.

The Loonie was flat at C$1.3071, against the U.S Dollar, at the time of writing.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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