Daily Market Update 08/09/2021

Markets

GBP

Sterling is lower against the dollar and the euro overnight. Scotland’s First Minister, Nicola Sturgeon has announced that her government will draw up a detailed prospectus for Scottish independence but did not announce a date for passing legislation which would pave the way towards a second referendum on leaving the United Kingdom. The UK has been accused of undermining its global leadership on climate change if it opens the first deep coal mine in decades in the country at Woodhouse Colliery. Environmental campaigners have vocally opposed the project in an effort to embarrass the UK government ahead of the COP26 Summit in Glasgow in November.

 

EUR

The euro is higher against sterling but lower against the dollar in early morning trade. The European Commission is increasing pressure on Warsaw and its Law and Justice Party (PiS) by ordering the ECJ to impose daily fines on Poland for backsliding on the rule of law. The EU could go further stripping Poland of its voting rights as an EU Member State or withholding EU funding for regions passing anti-LGBTQ+ resolutions. Angela Merkel used one of her final appearances in Parliament to urge voters to back her CDU successor, Armin Laschet to prevent the Social Democrats and the Greens forming a left-leaning government in Germany with Die Linke or The Left, a socialist party comprised by a motley crew of East German political ideologies.

 

USD

The dollar is well-bid against most major currencies overnight. The Biden Administration’s plans to administer booster shots of the Covid-19 vaccine in September have been mired in a confusion of regulatory approvals, eligibility, logistics and funding concerns. Two weeks remain until the rollout of third booster shots are due to be rolled out, yet uncertainty over timing and implementation of the programme could cause delays. The University of Michigan and US Labor Department have made initial forecasts that the US economy could slow down in September, despite expectations that this month would see an uptick in consumer spending and a decline in labour shortages.

Ballinger & Co. Morning Report– 08th September 2021

Today’s Rates

GBP>EUR – 1.1635

GBP>USD – 1.3812

EUR>USD – 1.1822

GBP>CAD – 1.7458

GBP>AUD – 1.8692

GBP>SEK – 11.600

GBP>AED – 5.0522

GBP>HKD – 10.700

GBP>ZAR – 19.714

GBP>CHF – 1.2647

Today’s Calendar

·       CAD      BoC Rate Statement

·       CAD      BoC Interest Rate Decision

·       GBP      BoE Monetary Policy Report Hearings

Today’s Highlights

·       Forex Today: Dollar stands tall amid Delta covid variant, US stimulus woes, Bitcoin stabilizes

·       GBP/USD remains on the defensive below 1.3800 amid USD strength

·       ECB: Rates seen unchanged, focus shifts to QE – UOB

·       ECB’s Holzmann: Central bank could be tightening policy quicker than markets expect

 (https://frank-exchange.com/)

This document has been prepared solely for information and is not intended as an Inducement concerning the purchase or sale of any financial instrument. By its nature market analysis represents the personal view of the author and no warranty can be, or is, offered as to the accuracy of any such analysis, or that predictions provided in any such analysis will prove to be correct. Should you rely on any analysis, information or report provided as part of the Service it does so entirely at its own risk, and Frank eXchange Limited/Manor House Foreign eXchange Limited accepts no responsibility or liability for any loss or damage you may suffer as a result. Information and opinions have been obtained from sources believed to be reliable, but no representation is made as to their accuracy. No copy of this document can be taken without prior written permission.

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