11 novembre 2019 â 4 min read
It is the UK elections which dominate the headlines this morning. Tory MP Sajid Javid has said over the weekend that Labour spending plans would cost an eye watering ÂŁ1.2 trillion over five years â a figure comprised of a planned increase in spending directly from a document produced by them and then included around ÂŁ590m of pledges made publicly since then. There appear to be a number of assumptions made by inference from past documents Labour has produced (this may not necessarily be the case as their final budget plans are not yet released).
These so called ârecklessâ plans would alone be enough to put Britain into an economic crisis âwithin months, not years.â Even though this was later described as âfake newsâ by the Labour counterparty John McDonnel it was the denationalisation plans of the railways, postal service and energy which could have the most costly effect. The conservative party continue to maintain a lead in the opinion polls released over the weekend.
In other news the UK sovereign credit rating has cut to a negative outlook by Moodyâs on the basis that âBrexit-era policymaking process has illustrated how the capability and predictability that has traditionally distinguished the U.K.âs institutional framework has diminished.â This may come as a surprise as we havenât seen a downgrade in the UK credit rating by a major company since 2017. However, Moodyâs had their reasons as they later added âthe decline in institutional strength appears to Moodyâs to be structural in nature and likely to survive Brexit given the deep divisions within society and the countryâs political landscape.â
Data to look out for today is the UK GDP figures which are expected to be up 0.3% compared to the previous quarter. However, should this come lower than expected or even negative (which would mean we are in a technical recession) we can expect to see increased volatility between GBPUSD with a move below 1.2760, the three-week low. The main focus will continue to be on the UK elections in the start of December with any volatility being short lived.
The greenback found some strength towards the end of last week with some progress made in the US-China trade relations. News from an official from the Chinaâs Ministry of Commerce stated that both parties were discussing a roll back on tariffs implemented on each other which could occur before âphase oneâ of the trade deal is signed. Since then Trump has made it clear "I haven't agreed to anything. China would like to get somewhat of a rollback, not a complete rollback because they know I won't do it." Despite the lack of clarity, we are a stage where both parties want a deal to be resolved soon.
At the time of writing:
GBPUSD - Trading below 1.28 at 1.2799
GBPEUR - Trading above 1.16 at 1.1610
EURUSD - Trading below 1.11 at 1.1023
Special Notes: The figures are based on the live mid-market rates, correct as of 08:30 GMT on 11/11/2019, 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 âLive Money Transfer ratesâ.
If youâd like to talk to our Business Solutions team about your business requirements, get in touch here
Login  |  Register and Save Now
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
7 mars 2025 â 5 min read
28 fĂ©vrier 2025 â 5 min read
13 fĂ©vrier 2025 â 7 min read
11 fĂ©vrier 2025 â 7 min read
4 fĂ©vrier 2025 â 4 min read
28 janvier 2025 â 4 min read