British Pound Weakness Lifts American Dollar
UK Prime Minister set a date for a snap election in December, and Asian investors went wild. The British pound slipped against the American Dollar by 0.27% at 1.2816.
European Union officials will meet Johnson late Friday for their decision on Brexit’s deadline delay. However, an election looks far from possible.
Outgoing European Central Bank President Mario Draghi said the outlook for UK’s economy is poor.
Analysts claim Britain’s withdrawal from the EU proved too complicated, which discourages investors form taking risks before they fully decide.
The GBP/EUR pair sank by 0.21% to 1.1546.
Investors would remain uncertain as long as the Brexit details would remain unclear within the EU.
Still, investors are waiting for the Federal Reserve’s policy meeting next week. Households expect a 25 basis-point cut in the Fed Funds rate.
The American central bank also set a meeting for monetary policies next week. US President Donald Trump insisted on having more rate cuts.
Brace for the American Monetary Policy Meeting
President Trump expects the third rate cut from the Federal Reserve Bank, which proved to tip into the American favor. He claimed Fed Bank was “way too fast to raise, and way too slow to cut.”
Analysts still question America’s economic growth, resulting in a market slowdown. The US Dollar Index inched up 0.1% to 97.470.
The EUR/USD pair kept flat at 1.1102 when the European Central Bank left their monetary policies unchanged.
Meanwhile, reports claim the US and China may finally end the trade war.
China recently agreed to annually purchase $40 billion to $50 billion US agricultural produce. The US agreed to delay a tariff increase scheduled this month in exchange.
The USD/CNY pair nudged up at 0.01% late Friday at 7.0689, while GBP/CNY went down by 0.26% at 9.0593.
Traders are waiting for the Asia Pacific Economic Conference in Chile on November 16-17. Both countries will sign the “Phase One” agreement in the event.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!