An end to Brexit uncertainty as a result of the majority win for the Conservative Party has helped to keep the Pound elevated against both the greenback and the Euro. Analysts say that data, and the upcoming announcement of the new head of the bank of England, will drive the currency in the near term. Mark Carney, the current governor, will leave the top job at the end of January. Analysts say that the government is likely to name Minouche Shafik, who is a deputy governor, to the job.
At 11:15 am in London trade, the GBP/USD was trading higher at $1.3364, up 0.2927%; the pair has ranged from a trough of $1.33156 to a peak of $1.34235. The EUR/GBP is lower at 0.8337 Pence, down 0.1078% and off the earlier low of 0.83009 Pence.
Aussie and Kiwi Higher on Trade News
Asset-based currencies such as the Aussie and Kiwi Dollars are likely to see some volatility as FX traders await some concrete news on the trade deal between the US and China. Analysts say that the absence of details for the phase 2 part of the agreement is keeping FX traders on the sidelines ahead of the Christmas holiday. Just lat week, the governments of both nations agreed to lower previously imposed tariffs. That had initially helped Antipodean currencies linked to the Yuan, but sentiment has now shifted. The AUD/USD was trading at $0.6886, up 0.1513%, while the NZD/USD was at $0.6612, up 0.2274%.