It’s been another eventful session for major currencies, driven in part by a rebound in global risk appetite. A Bloomberg report with unnamed officials, claimed that US-China trade negotiations were still on track for a deal by 15th December.
The Dollar, which has traded like a safe-haven asset this year, shed another 0.3% in trade-weighted terms and is now at a 2-week low. Weak private-sector employment and ISM non-manufacturing data for November have not helped. Only 67,000 jobs were created according to the ADP – the second weakest monthly print since June 2011 – and economic activity in the US non-manufacturing sector slowed by more than expected to 53.9 from 54.7 in October.
The outperformer today was Sterling, with GBP/USD finally breaking through 1.30 to trade at a hashtag6monthhigh. Similarly, GBP/EUR breached the 1.18 level for the first time since early May. Sterling benefited from upward revisions to November PMI data but the main driver of Sterling’s rally has seemingly been growing market confidence that the ruling Conservative Party will secure a significant parliamentary majority in the British general election on 12th December.
