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The pound began this week soft against the US dollar, which has seen a boost since the FBI announced Hillary Clinton would not face criminal charges for using a personal email server. Meanwhile, Eurozone retail sales figures are set for release, which could affect the euro’s value. However, many analysts expect the dollar to lose value as the week – and presidential election – continues. It is likely the Mexican peso’s value will also be significantly affected by the election.
Soft start to week for Sterling The pound has had a soft start to the week against the euro, which follows speculation that the UK’s exit from the European Union (EU) will still be happening despite last week’s ruling by the High Court that the government must consult MPs on the process. Prime minister Theresa May has said the government would appeal the High Court’s decision. Speaking to journalists, she said: “MPs and peers should recognise there was a Parliamentary decision to give a choice to the people in a referendum. Now it’s the job of the government to get on and deliver it.” It follows on from last week, when the pound gained value against the major currencies after positive news from the Bank of England (BoE). Some analysts think that the effect of the BoE revising its 2017 growth forecast up to 1.4% and its inflation prediction to 2.75% next year will still be felt on the pound this week, which could cause it to increase in value. However, others think that Sterling will struggle again this week – the result of Brexit-related concerns. The pound also had a soft start against the US dollar, which was largely the result of a boost to the Hillary Clinton presidential election campaign. It was revealed that she will not face any further action over using a private email server.
The euro is expected to regain some grounds against the dollar The euro’s exchange rate with the US dollar suffered as a result of the FBI’s decision that Hillary Clinton had not committed a crime. However, there has been a good deal of interest in euros and it is thought by many analysts that the euro will see an increase in value against the dollar, particularly because of expected unpredictability in the USD’s value. Today will see the release of September Eurozone retail sales data. It is thought that it will see a drop from the previous month’s figures. This could result in a fall in the euro’s value.
Volatile week in perspective for the US dollar It is predicted that the US dollar is going to have a volatile week, with the presidential election taking place on Tuesday 8 November. Democrat candidate Hillary Clinton experienced a slight boost to her campaign after the FBI announced that she had not committed a crime by using a private email server. After the FBI made its announcement, the dollar rose in value against the euro and the pound. However, the polls are tight and it is not known whether Ms Clinton has done enough to secure a win. If her rival Donald Trump wins the presidency, the dollar is expected to fall in value, which could see other currencies experiencing a boost.
US news boosted the Mexican peso The Mexican peso is one currency that responded well to the news that Ms Clinton will not face further action over her email server. It tends to gain in value when the Democrat candidate sees a boost to her campaign. This is largely down to the fact that one of Mr Trump’s intentions is to build a wall between the US and Mexico, in an attempt to prevent any undocumented migration.
