The Pound held relatively firm following Wednesday’s YouGov poll suggesting a comfortable Conservative majority but couldn’t break 1.2950 on the Dollar or 1.1765 on the Euro. The US Bank holiday meant trading volumes were low and there was some caution given potential shifts in voting and reservations over the longer-term outlook. Overnight, consumer confidence was unchanged at -14 for November, but the Lloyds business barometer strengthened to 9 from 6 previously which was the third successive increase and strongest level since January with hopes that political uncertainty would ease.
The Pound is marginally higher at market open but there is caution surrounding choppy trading today with position adjustment ahead of the weekend when further opinion polls will be released and the usual month-end trading.
The US markets were closed in observance of Thanksgiving Day and in absence of any relevant US-China headlines, a subdued US dollar demand turned out to be one of the key factors that extended some support the Dollar.
The Euro keeps hovering around the 1.10 handle at the end of the week amid marginal volatility and lack luster trading conditions. The common currency is struggling to add gains against the Dollar from Thursday’s slight advance, although it is so far managing well to keep activity at the critical support level at the 1.10 figure.
In the meantime, the pair are prolonging the multi-session range bound theme amidst the absence of progress in the US-China’s deal and growing concerns around the situation in Hong Kong.
On the docket today we have preliminary inflation figures in France, Italy and the broader Euroland for the month of November.
Data to watch
10:00 - EUR - CPI Flash Estimate
Posted in Daily Market News on Nov 29 2019