The GBP has been losing ground to the USD, sliding below the 1.40 mark, but as with other major currencies, all eyes on US events, especially on the speech today by new Fed Chair, Powell. A lively day today for the EUR and on the radar though, the Italian elections next week. How will the EUR be affected?
The EU will be publishing this week, the UK’s draft withdrawal agreement from the EU. This, could send the GBP soaring or crashing. The USD has been weakening against a basket of currencies but traders are eyeing the speech tomorrow by new Federal Reserve on economic policy.
The last ECB Monetary Policy Meeting Accounts indicated a tightening of monetary policy. Should today’s minutes show more evidence of a change of policy, the EUR would be expected to gain in value. Watch today the EIA Crude Oil Stocks change for effects on the greenback and the loonie.