November 1, 2019 — 3 min read
Politics dominated much of the headlines yesterday, as both parties gear up for the December election. The main news came from Donald Trump who called on Boris Johnson to team up with Nigel Farage to form an “unstoppable force”, and claimed Jeremy Corbyn would be “so bad for (the) country”.
Trump then moved on to the proposed Brexit deal saying that the US “can’t make a trade deal with the UK (under) certain aspects of the deal”, despite Johnson’s claims it would allow the UK to have an independent trade policy.
From an economic point of view, The US Federal Reserve cut interest rates for the third time in a row on Wednesday night, just hours after data showed the US economy slowed in the third quarter. Fed President Powell struck a more cautious tone than at past meetings however, suggesting the central bank will not chop rates again in December. Powell said, “we see the current stance of monetary policy as likely to remain appropriate”. Powell said, following the decision, “as long as incoming information about the economy remains broadly consistent with our outlook.” That outlook predicts “moderate economic growth, a strong labour market, and inflation near our symmetric two per cent objective,” Powell said.
The Federal Open Market Committee (FOMC) opted for a third 25 basis point (0.25 percentage point) cut in as many meetings, taking the central bank’s target interest rate to between 1.5 and 1.75 per cent. Powell said the FOMC “took this step to help keep the US economy strong in the face of global developments, and to provide some insurance against ongoing risks”.
Today we have US employment figures in the form of non-farm payrolls which could see the dollar weaken further should employment numbers disappoint.
At the time of writing;
GBPUSD – Trading below 1.30 at 1.2968
GBPEUR – Trading above 1.16 at 1.1616
EURUSD – Trading at 1.1161
The figures are based on the live mid-market rate, correct as of 08:30 GMT on 01/11/2019, and are provided for indicative purposes only. Live mid-market rates are not available to consumers and are for informational purposes only. The rates we quote for money transfer can be selected via the page on our website ‘Live Money Transfer rates’.
If you’d like to talk to our Business Solutions team about your business requirements, get in touch here
Please Note:The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
Click here more information about XE