Sterling somewhat rebounds on look-out for foothold

Posted 06 September, 2018

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, as she expressed a firm stance to prevent the second Brexit-related referendum. In addition, the UK Prime minister reportedly said that the trade deal between the UK and EU seemed quite real, as the market expert noted.

As a result, insiders breathed easy. The Brexit is in the spotlight of the sterling fans, thus the situation changes sharply following any reports on this matter.

Besides, Germany is said to agree to go back on some trade requirements that were stated during the talks. In particular, the officials are believed to make this move to let talks progress further, which is definitely a good sign, since Germany can probably influence other EU representatives around the table. Still, afterwards Germany's press secretary stated that Germany has not changed its relation to the Brexit, so the local reports might not receive a special touch.

Previous forecast

07 September, 2018 16:48

← Brexit issue in sterling spotlight

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...

Brexit issue in sterling spotlight

Next forecast

05 September, 2018 18:04

Euro decline can be chance for buying →

The US dollar remains strong in the middle of the week, though it does not show the yesterday's rush to peaks. Bulls seem to lose the steam, and further upturn needs fuel, which can come from the trade war escalation and US labour market figures. The market will be focused on earnings levels as usual.

Euro decline can be chance for buying
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