Forex Today: focus on Trump and Boris’s manifesto
|Here is what you need to know Monday, November 25th:
- Trade tensions between the US and China and UK elections/Brexit remain as the main market motors. The dollar closed the week with a strong note amid robust local data and discouraging macroeconomic figures elsewhere.
- Stagnated EU manufacturing activity, and contracting services output weighed on the shared currency. EUR/USD barely holding above 1.1000.
- GBP/USD eased amid dismal manufacturing and services activity, although it held above a critical support, the 23.6% retracement of its October rally. Over the weekend, the UK PM, Boris Johnson, unveiled the Conservative Party’s manifesto, focused on moving on from Brexit and austerity, and pledging not to raise income taxes. The headlines are Pound-positive, although probably not enough to push the pair back to the 1.2900 region.
- UK polls continue showing an over 10 points lead of Conservatives over Labour.
- Gold came under selling pressure on Friday amid renewed trade deal hopes, after US President Trump said that a trade deal with China was "potentially very close." Chinese leader Xi-Jinping also made optimistic comments. Chances that a trade deal could be reached before year-end rose back.
- Equities recovered by the end of the week, although fell short of trimming early losses.
- Cryptocurrencies remained pressured throughout the weekend, poised to start the week in the red.
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