Political stresses and trade uncertainty stifled risk appetite..
The dollar continued to gain support by default amid a lack of confidence in other majors with tightness in money markets also providing support. Underlying concerns over the Euro-zone growth and political environment pushed EUR/USD to fresh 28-month lows near 1.0900.
Political stresses and trade uncertainty stifled risk appetite with equity markets registering slight net losses amid mixed performances.
Domestic political tensions continued to curb Sterling support, especially with very cautious EU rhetoric. Choppy trading continued in oil with slight net losses on underlying demand concerns.
Precious metals were hampered by dollar strength, but gold held key support. Bitcoin dipped to 3-month lows with a dip below $8,000.
The Euro remained under pressure, however, with the single currency dipping to near 1.0920 against the US dollar. Early in New York trading, German Chancellor Merkel stated that the job of politics is to ensure that the ECB is not over-strained on monetary policy. The comments increased speculation over a potential fiscal boost which briefly boosted the Euro.
The final reading of US second-quarter GDP was unchanged at 2.0% and in line with market expectations while price indicators were slightly stronger than expected. Jobless claims increased slightly to 213,000 in the latest week from 210,000.
On Thursday, a Junior Brexit Minister stated that the Withdrawal Agreement would be re-opened, although markets were sceptical, while EU Chief Negotiator Barnier reiterated that the EU was ready to work on new proposals.
The House of Commons atmosphere remained extremely tense as all sides plotted their next moves. A government request for a parliamentary recess next week for the Conservative Party conference was rejected and there was no evidence of compromise which continued to hamper Sterling sentiment. There were further concerns that the government would look to bypass legislation demanding that Prime Minister Johnson seeks a Brexit extension.
The Euro was unchanged on the day near 0.8850 while the UK dipped to 2-week lows near 1.2300 before a slight recovery. The GfK consumer confidence index improved slightly to -12 from -14, but political factors continued to dominate with the UK currency around 1.2330 on Friday.
|07:45||Consumer Spending MM(AUG)||0.30%||0.40%|
|08:00||BoE MPC Member Michael Saunders||-||-|
|08:15||ECB Luis De Guindos Speaks||-||-|
|10:00||Euro-Zone Consumer Confidence(SEP)||-7.1||-7.1|
|13:30||USD PCE Core Price Index(M/M)(AUG)||0.20%||0.20%|
|13:30||USD PCE Core Price Index (Y/Y)(AUG)||1.60%||1.60%|
|13:30||USD Durable Goods Orders (M/M)(AUG)||-1.00%||2.00%|
|13:30||USD Durable Goods Orders Ex Transportation(AUG)||-||0.20%|
|13:30||USD PCE Core Price Index(M/M)(AUG)||-||0.2%|
|13:30||USD Personal Income (M/M)(AUG)||0.40%||0.10%|
|13:30||USD Personal Spending (M/M)(AUG)||0.30%||0.60%|
|13:30||FOMC Governor Keith Randal Quarles Speech||-||-|
|15:00||USD Michigan Consumer Sentiment(SEP 08)||92.1||92|
|17:00||FOMC Harker Speech||-||-|
|18:00||USD Baker Hughes US Oil Count||-||719|