Sophos : Global Risk Cools

Good morning,

Following a highly anticipated statement from Donald Trump yesterday, risk sentiment across global markets cooled as the worst-case scenario of further military action between the US and Iran deescalated - for now. Gold fell 4.3% from 1611 to 1547 and Crude Oil tanked 8.4% during trading hours, reflecting the calmer market sentiment.

German industrial production year-on-year came in at -2.6% vs an expected -3.8%, giving some lift to the Euro; however, concerns for the struggling car sector remain front of mind. Future order book demands will do their best to appease any fears surrounding further industrial recession fears.

Several key US Federal Bank FOMC members will be speaking today, but given the hard-line approach to rates over 2002, it's unlikely that we will hear anything too far out of the ordinary.

Key currency pairs:

• GBPEUR continues to grind higher into the 1.18s whilst data releases remain thin on the ground
• GBPUSD remains rangebound at 1.305, but we have US Non-Farm payrolls due tomorrow which will cause volatility.

The majority of our clients are in the process of mapping out their 2020 budget rates and are utilising various hedging tools to minimise risk and FX costs throughout the year. Contact your account manager today, to discuss your options to ensure that 2020 starts with some certainty.

Have a great day.

Author: Alistair Hutson, Private Dealing Manager

Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available online.