The pound found some support on the back of comments from Angela Merkel yesterday. The under pressure German leader stated that we (the European Union) will ‘think about practical solutions’ to the Irish backstop. The pound immediately leapt 0.50% against its peers, rising to $1.2160 and €1.0960, against the US dollar and euro, respectively.
Today Boris Johnson will visit Chancellor Merkel and try to drum up some support for this current stance on renegotiations and, in particular, the thorny issue of the Irish backstop. Tomorrow he heads over to Paris to visit Emmanuel Macron where he’ll once again attempt to win over support from the French leader.
Today’s trading session is a quiet one with the Federal Reserve meeting minutes the highlight. The minutes are from the Fed’s July meeting where they lowered interest rates by 25bps for the first time in over a decade. Market participants will be sifting through the minutes attempting to ascertain whether the central bank will be lowering rates again at September’s meeting. Elsewhere, Canadian inflation numbers will cross the wires at lunchtime which could create some volatility for the Loonie aka Canadian dollar.
Written by Viv Savani. 9:06am, August 21st 2019
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