Pound Sterling (GBP)

The Pound began the week fluctuating across the board on politically-triggered uncertainties.

On the negative side, the Government is expected to present its case to the Supreme Court from Monday to Thursday, arguing that it should be able to trigger Article 50 next year without Parliament’s approval.

This lengthy process is not expected to be resolved until the New Year, which makes the validity of the Government’s argument especially important at the present time.

Elsewhere, the high-impact UK services PMI for November rose during the month from 54.5 to 55.2.

This afternoon will bring a speech from Bank of England (BoE) Governor Mark Carney, who is expected to present remarks during a visit to a Liverpool university.

 

Euro (EUR)

The Euro has been a dynamic currency over the past 24 hours, having dived in the wake of the Italian Referendum result only to return to power shortly afterward.

As many economists had predicted, a majority of Italians voted ‘No’, which caused Prime Minister Matteo Renzi to announce his resignation.

While this news caused the Euro to tumble across the board, the single currency has since recovered due to some positive PMI results. While not rising to the levels forecast, the finalised increases in the November services and composite PMIs have both seen the appeal of the Euro rise.

The afternoon will bring a pair of European Central Bank (ECB) speeches from President Mario Draghi and official Benoit Coeure.

 

US Dollar (USD)

While it has recently been rocked by controversial statements from US President-Elect Donald Trump, the US Dollar has nonetheless managed to rise across the board during trading today.

The latest good news from the US came last Friday, when it was revealed that nation’s unemployment rate had dropped unexpectedly from 4.9% to 4.6% in October.

Less supportively, Trump has been threatening diplomatic incidents by criticising Chinese monetary policy and military activity, while further incurring Beijing’s ire by talking with the President of Taiwan, a country that has long struggled to free itself from Chinese government influence.

The US Dollar may be moved this afternoon by a trio of Fed speeches, as well as by the ISM non-manufacturing PMI for November, which is expected to rise on the month.

 

Australian Dollar (AUD)

While the latest set of Australian economic announcements have been largely positive, AUD has failed to capitalise on this news, instead dipping against all of its regular peers.

The source of this low Australian Dollar demand is thought to be the falling cost of iron ore, which has shown signs of ceasing its previous wild fluctuations.

The better data concerned the recent AiG services index for November, which rose, and a recent climb in ANZ job advertisements on the month.

Looking to Tuesday, the Australian Dollar may manage to rise if the AiG construction index climbs from 45.9 to 50 as expected. Additionally, the Reserve Bank of Australia (RBA) is expected to make another interest rate freeze on the same day.

 

New Zealand Dollar (NZD)

The New Zealand Dollar has crashed across the board during trading today, in the wake of Prime Minister John Key’s surprise resignation.

Effective from December 12th, Key’s resignation is expected to result in a replacement being appointed from the party, but could see political turmoil depending on how this announcement is received among senior party members.

Assuming that the NZD recovers from this shock by Tuesday, the currency could be shifted by any dramatic movements in the Global Dairy Trade price index.

 

Canadian Dollar (CAD)

With crude oil costs still climbing after last week’s OPEC decision, the Canadian Dollar has found itself in a mixed position so far today.

The latest domestic data saw the unemployment rate drop last week, though a data shortage today has likely triggered a shedding of some of the prior CAD gains.

The next news to watch out for will come over Tuesday afternoon, covering October’s trade balance (set for a deficit reduction) and the Ivey PMI for November, which has a rise from 59.7 to 60.1 expected.