mask Brexit Woes Hit the Pound as the Market Braces for another Rollercoaster Year for the Pound

04/ 02/ 2020

Brexit Woes Hit the Pound as the Market Braces for another Rollercoaster Year for the Pound

Daily Update – 4th February 2020

Yesterday's Focus

  • USD Markit Manufacturing PMI, ISM Manufacturing PMI

Yesterday's Explained

The start of the week saw the greenback recovering its bullish tone, appreciating against most major rivals on the back of stronger than expected US data. The EUR/USD pair fell to 1.1035 bouncing from the level to settle around 1.1060, after the US ISM Manufacturing PMI resulted in 50.9 in January, largely surpassing the market’s expectations, while December index was upwardly revised from 47.2 to 47.8.

The Sterling Pound was the worst performer against the greenback this Monday, with the GBP/USD pair plummeting to 1.2989, down over 200 pips in the day. The slide came with comments from UK PM Boris Johnson, who stated that the kingdom does not need for “a free trade agreement to involve accepting EU rules on competition policy, subsidies, social protection, the environment or anything similar, any more than the EU should be obliged to accept UK rules."  Johnson added that the UK wants a comprehensive free trade agreement like Canada's one.

Concerns about the coronavirus outbreak continue to affect markets. Chinese stocks plummeted after the long holiday and the government took some measures to stabilize markets. 

 

Today’s Market

  • AUD RBA interest Rate Decision
  • USD Factory Orders

Today’s Focus

There won’t be relevant releases from the EU and the US this Tuesday and the UK will release the January Markit Construction PMI