Today has been a session of two halves for many major currencies, including the Euro, Sterling and Aussie and Kiwi Dollars. They weakened early in the day versus the Dollar only to recover post-lunchtime to currently trade at levels broadly unchanged from 24 hours ago.
UK data showing that the construction sector remained under great pressure in September exacerbated the downturn in GBP/USD to near 1.22 but the cross has since bounced back to near 1.23. There has so far been little reaction to Prime Minister Johnson’s key lunchtime speech at the ruling Conservative Party’s conference. He outlined his alternative to the controversial Irish backstop but it had already been leaked in the press and Johnson was short on further details. He has forwarded his “new” Brexit plan to the European Commission and to the EU’s chief negotiator, Michel Barnier, and markets now await their reaction.
The Swiss Franc has been under modest pressure following the release of data showing that Swiss headline CPI-inflation slowed to just 0.1% yoy in September from 0.3% yoy in August. Swiss economy is now teetering on the brink of deflation (falling prices).
