Sterling starts week with consolidation

Posted 25 February, 2019

The sterling rate has shown quite moderate moves against the US dollar Monday morning. Today the market participants remain focused on the Brexit development, especially given that the deadline for the divorce is getting closer every day.

The EU negotiator Michel Barnier believes that there is no sense to reschedule the Brexit date. As he noted, the decision must be made and it is high time that both parties finally to take over the responsibility. Moreover, the UK requires the responsibility, since the British people have to realize the full range of consequences of the decisions that were taken via democratic approach or in the other words the popular referendum.

The EU team was definitely not very happy to hear that they should resume talks with the UK representatives. However, this is an important measure to secure soft-Brexit, and thus hardly can be avoided. Nevertheless, the European party looks hardly optimistic.

Besides, there are rumours that the parties will require extra time to complete the talks. As a result, the market can see no Brexit on March 29 as it was determined, though the upcoming weeks will bring an inflow of the Brexit reports.

The sterling-to-US dollar exchange rate has already tried the support line and is gathering upward pace now following the wave. The current rate stands at some $1.3082. In the near term, the pair can slide to the support near $1.3013. However, it is possible the rate will keep soaring to the target at $1.3216 given passing of the support line.

Previous forecast

26 February, 2019 14:29

← US President Donald Trump calls upon oil cartel to slow down

Oil prices have gained some 35% on the active strengthening over the past few months. Brent oil prices have soared practically to $68/bbl over the past two months. The increase observed over the past two months was driven by the US sanctions against Venezuela which hosts increasing reserves of unsold oil along with tighter measures against Iran. However, the market believes that the key reason behind the upturn was production reduction by OPEC members.

US President Donald Trump calls upon oil cartel to slow down

Next forecast

20 February, 2019 17:20

Oil prices temporarily stabilize amid intensive global developments →

Oil prices temporarily stabilized after the last-week surge. The Brent prices stand slightly above $66/bbl at the moment. Some market participants attribute this to a halt in the US-China negotiations while in fact the developments are driven by lower oil output in Saudi Arabia on the accident at its largest offshore field. Oil production and exports may even fall below 9.8 million bbl per day and 6.9 million bbl per day as expects Minister of Energy Khalid al-Falih. In spring, the impact on the production will come from the progress in the US-Iran relationships.

Oil prices temporarily stabilize amid intensive global developments
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