Thursday the 12th of December has arrived and it’s time to see who the general public would like to lead the country forward. Sterling is sitting at multi-month highs against many of its peers as participants bet on a market-friendly Tory government. The first piece of market-moving information will come tonight at 10pm when the BBC release their exit poll. This has historically been an accurate indicator of political events in the past. We’ll likely see a reaction in sterling at this point, followed by further movement throughout the night as results are announced. The outcome should be decided by between 3am and 6am tomorrow morning. Please be aware – we could see big gaps in FX prices as developments occur. Please speak to your Cornhill contact to discuss how best to deal with your pending requirements.
Yesterday, the Federal Reserve maintained interest rates at 1.50% – 1.75%. Powell’s performance was deemed dovish as the central banker stated that we would like to see inflation pushing above target (2%) before the Fed considers increasing rates once again. The greenback weakened to the tune of 0.30% against its peers.
It’s also an important day for the ECB today as Madame Lagarde hosts her first press conference as President of the central bank. No major changes are expected, main focus will be on the tone she adopts and whether its deemed hawkish or dovish by participants. Judging by her recent comments it will likely be the latter.
Written by Viv Savani. 8:59am, December 12th 2019
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts 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.