In today’s other economic highlights, in a rather slow Monday, in the European session we get Turkey’s current account balance for September, while in the American session San Francisco Fed president Mary Daly speaks.
The USD was supported against its major counterparts by expectations of further monetary tightening by the Fed. The greenback also gained due to the interest rate differentials of the Fed with other central banks, according to analysts. After the midterms, analysts also point out that, the next upcoming issues could be Brexit and the Italian Budget. We could see the US Dollar making gains also in its role as a safe haven, as the Chinese economy seems to slow down and the US-Sino trade frictions continue to affect the market.
The pound weakened against a number of other currencies on Friday and opened with a negative gap on Monday against the USD. Main reason for the weakness seems to be a continuous Brexit uncertainty, as attention seems to be shifting towards the inner UK political scene. While the EU and the UK have yet to announce a deal about the Irish border issue, the two sides seem to be near an agreement about Brexit. On the other hand, the risk factor on this issue, seems to be whether UK’s PM will be able to pass any deal agreed with the EU, through UK’s parliament. As uncertainty rises for Brexit, volatility for GBP pairs seems to rise with it.