Pound suffers week of losses on UK political uncertainty

The outlook for the UK wasn’t looking particularly favourable on either the political or the economic front last week.

Sterling is now rebounding sharply from the weakness of the past several days however. GBP/EUR is up 0.6% to €1.1195, while GBP/USD has risen nearly 0.7% to US$1.3146.

A few empty days on the UK data calendar could leave the pound at the mercy of UK political uncertainty. Meanwhile the monetary policy outlooks of the Eurozone and the US could create volatility for EUR and USD.

GBP driven lower by gloomy economic outlook and conservative party schisms

Last week’s economic data did little to change the gloomy outlook of the United Kingdom, which kept the pound firmly on the decline. The fact that the government continues to present itself as disorganised and fragmented did nothing for market confidence.

Euro climbs despite mixed economic data and Catalonia independence bid

While the euro managed to climb overall last week, mixed economic data and political concerns following Catalonia’s independence referendum weighed on EUR advances.

Strong Fed hike odds boost USD; numerous policymaker speeches incoming

Firming confidence in the likelihood of an interest rate hike from the Federal Reserve in December helped lift the US dollar higher last week, despite some disappointing data from the labour market.

AUD, NZD benefits from political uncertainty abroad, but economic data mixed

AUD and NZD were on a mixed footing last week, with concerns abroad helping to fuel demand for the commodity-correlated currencies, but domestic data proving disappointing in several instances.