The election date has been set for the 12th December, with parliament being dissolved next week, so the campaigning can begin.
Sterling will likely be trading in reaction to the polls, with signs of a Conservative majority likely to lead to further sterling gains.
In the US, the central bank cut rates again this week as widely expected, with chairman Powell describing it as insurance against ongoing risks, namely low inflation, slowing global growth and trade concerns. He also reiterated the underlying US economy remains strong.
It does appear some progress has been made on the US-China trade talks, which continue to be a key driver of market sentiment.
Whilst in Europe, Lagarde called on Germany to use its budget surplus to fund investment, to help stimulate the economy.
On the exchanges, sterling has been underpinned by the election announcement, with polls currently showing the Tories would gain a majority.
GBP/USD remains well supported around 1.2800, whilst the psychological 1.3000 level remains the initial topside point to watch. A closing break here would target 1.3250.
GBP/EUR has some decent buying interest ahead of 1.1400, but has so far lacked the momentum to break the recent highs around 1.1660. The medium-term target remains at 1.1800.
|4/11/19||UK Markit/CIPS Construction PMI||43.3||44.0|
|5/11/19||UK Markit/CIPS Services PMI||49.7||49.8|
|5/11/19||UK Markit/CIPS Composite PMI||49.3||49.1|
|7/11/19||UK Bank Rate||0.75%||0.75%|
|7/11/19||UK Bank of England Inflation Report||–||–|
|Indices||Previous Close||YTD % Change|
|DFM GENERAL INDEX||2746||+8.54%|
UK Benchmark Rates
|3 month||0.80925%||2 year||0.77%|
|6 month||0.87625%||3 year||0.77%|
|12 month||0.97163%||5 year||0.76%|
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