Blog: Brexit and COVID-19 Keep the Pound in the Spotlight, with US Politics also in Focus – FX Empire

The Day Ahead:

For the EUR

It’s a relatively busy day ahead on the economic calendar. Key stats include August’s industrial production figures for the Eurozone.

Finalized inflation figures for Spain are also due out but will likely have a muted impact on the EUR.

On the monetary policy front, ECB President Lagarde is scheduled to speak. Expect any chatter on monetary policy or the economic outlook to influence.

With Boris Johnson’s 15th October Brexit deadline, however, expect the focus to be on Brexit ahead of tomorrow’s EU Summit.

Adding to the EUR’s near-term woes is the continued rise in new COVID-19 cases.

At the time of writing, the EUR was down by 0.03% to $1.1743.

For the Pound

It’s a quiet day ahead on the economic calendar. There are no material stats due out, leaving the Pound in the hands of Brexit.

Its last chance saloon for the likes of Macron to compromise or face the uncertainty of a no-deal Brexit. Hopes of an EU compromise and an agreement had hit a wall over the weekend following Macron’s latest demands.

With the BoE ready to deliver negative rates and the UK government introducing new COVID-19 containment measures, only a Brexit deal can support a Pound rebound.

At the time of writing, the Pound was down by 0.05% to $1.2931.

Across the Pond

It’s a relatively busy day ahead for the U.S Dollar. September wholesale inflation figures are due out later today.

Barring particularly dire numbers, however, the stats are unlikely to have a material impact on the U.S Dollar.

The market focus will likely remain on geopolitics, Capitol Hill, the U.S Presidential Election, and COVID-19 updates.

The Dollar Spot Index was up by 0.01% to 93.539 at the time of writing.

For the Loonie

It’s a quiet day ahead, with no material stats to provide the Loonie with direction.

While there are no material stats, the IEA’s monthly report should provide crude oil prices along with the weekly inventory numbers.

Expect COVID-19 news to also influence sentiment towards the demand for crude oil and the direction of the Loonie.

At the time of writing, the Loonie was down by 0.08% to C$1.3150 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.

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