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UK gears up for General Election debate - Euro currency news daily

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GBP - British Pound

Friday boosted the pound after a muted beginning of the week last week. GBP soared off the back of news that Farage and Johnson have formalised a deal which states the Brexit party candidates will stand down in the general election meaning they will not contest for any Tory seats. It is reported that Farage may encourage his candidates to stand in areas that Johnson is expected to comfortably lose in order to pull votes from labour. At the same time, there was another big social media push for Corbyn over the weekend as many blame Boris and the lack of building regulation for the fire at the block of student flats in Bolton. The conservatives are still near 20 points ahead in the polls.

Sterling will be completely dictated this week by General Election news. Tuesday sees the first of the TV debates between Johnson and Corbyn. It is expected that the appointment of a labour government would send sterling tumbling down over 2.5%, whilst a conservative government should send Sterling through the 1.31 handle in the immediate term. GBP is currently trading at 6-month highs against the Euro and nearing the 4-month landmark against the USD. No technical data of note released this week in the UK.

Key Movers

Major currencies traded sideways this morning as there is a calm before the expected upcoming storm. There is news from Beijing, claiming that there was a big progression in phase 1 trade war talks over the weekend between the US and China. The Chinese state news wire claimed there were "constructive talks". The global manufacturing slowdown seems to be a grave worry for a number of world leaders and therefore the US and China are being urged to form a deal and negate the current slowdown spill-over.

In other news, the FOMC and ECB monetary policy minutes are released on Wednesday and Thursday respectively, as well as an abundance of European Manufacturing and Services data released on Friday. The tone around the economic outlooks are the key take from the minutes and expect both EUR and USD to sell off on the back of a dovish stance going forward.

Expected Ranges

GBP/USD: 1.2925-1.3400 up

GBP/EUR: 1.1660-1.1775 up

GBP/AUD: 1.8915-1.9055 up

GBP/NZD: 2.0175-2.0305 up


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Eurozone Economic Calendar

Monday 18 November


09:00 ECB's De Guindos speech
13:05 ECB's Lane speech

Tuesday 19 November


09:00 Current Account n.s.a (Sep)
09:00 Current Account s.a (Sep)
10:00 Construction Output w.d.a (YoY) (Sep)
10:00 Construction Output s.a (MoM) (Sep)

Wednesday 20 November


09:00 EU Financial Stability Review
17:00 ECB's Lane speech

Thursday 21 November


08:10 ECB's Mersch speech
09:40 ECB's De Guindos speech
12:30 ECB Monetary Policy Meeting Accounts
15:00 Consumer Confidence (Nov) (Preliminary release)
18:30 ECB's De Guindos speech

Friday 22 November


08:30 ECB's President Lagarde speech
09:00 Markit Manufacturing PMI (Nov) (Preliminary release)
09:00 Markit Services PMI (Nov) (Preliminary release)
09:00 Markit PMI Composite (Nov) (Preliminary release)
20:30 CFTC EUR NC Net Positions