Brexit issue in sterling spotlight

Posted 07 September, 2018

The end of the week is positive for the European currencies. The euro shows moderate upturn, though the sterling is hiking driven by generally good Brexit reports.  

On Friday, the sterling-to-US dollar exchange rate touched the 1.30 handle for the first time in September. Nevertheless, the breakout must be confirmed, and the rate slightly decreased to 1.2969 later this day, though maintains its upward potential. The observed strengthening is said to be related to the statements regarding the Brexit. Specifically, the EU negotiator commented on Ireland's border issue and proposed ways of its settlement. However, the solution has not be found yet. 

The market expert stated that the no-deal Brexit remains possible in the long run, so the market can see new sterling selloffs. The regular meeting of BOE will take place next week, though insiders practically sure that the bank will not raise the interest rate.

The breakout of 1.30 must be technically confirmed by deals, but the insiders are unlikely to take profit before the weekend. Moreover, as the market expert stated, the market can start avoiding risks again, which correspondingly drive greenback's demand up.

Next forecast

06 September, 2018 13:45

Sterling somewhat rebounds on look-out for foothold →

The sterling regains positions against the US dollar in the second half of the week. The sterling to US dollar exchange rate stands at 1.2934 now. The sterling showed untraditional very active midweek. After about 6 days of selloffs, the currency enjoyed buying and jumped by almost 2 figures. Such market development can be explained by the statements of Theresa May...

Sterling somewhat rebounds on look-out for foothold
Write a comment
Prove you’re not a bot + 18 = 38