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GBPPolitics and the Pound have not mixed well lately. Sterling remains under pressure as the race to replace Theresa May gathers steam. The market is, however, hoping for a quick return to the Brexit process and investors are waiting for more clarity on future exit plans. Adding to the woes…
GBPSterling moved sharply lower yesterday as political events dominated. Former Cabinet Minister Fallon stated that the current Brexit agreement had no chance of being approved and should be re-negotiated. Following President Trump’s trade comments (see below), underlying sentiment deteriorated further and Sterling declined to below 1.2770 against the Dollar. The…
GBPThe British Pound underperformed, accelerating downward this morning just ahead of the opening bell in Europe. The fall seems linked to dimming prospects for passing the Brexit deal championed by Prime Minister Theresa May. UK banking-sector mortgage approvals increased to 39,700 for October from 38,700 the previous month and were…
GBPThe Pound has been firmer of late, although remains vulnerable considering PM May will now face her biggest challenge when she takes the Brexit deal to the UK Parliament where she needs it to be approved. This is where the major risk lies for the Pound. After resolving the Gibraltar…
GBPSterling spiked last night over reports that the Irish backstop issue had been resolved and that the technical withdrawal agreement had been agreed. Sterling rose to a high on the market just shy of 1.1550 against the Euro (an eight-month high) and above 1.3030 against the Dollar. The barrage of…
GBPThe Pound took the market on a roller coaster ride yesterday following news British parliamentarians were supporting Prime Minister May’s Brexit divorce deal negotiations. A Sterling sell-off began after reports that the Cabinet is not close enough to agreeing on a way forward for top-level Brexit negotiations to resume and…
EUR Yesterday was a tough day for the Euro. The biggest news was an Italian politician coming out and saying that the Italian fiscal problems would be solved if they were not part of the EU. Whilst he stated that this was not the intention of the government, it did the…
GBP The Pound rose slightly yesterday on news of a possible compromise on the Irish Border. Yet, the Pound has since pared gains against the US dollar on growing uncertainty surrounding the ongoing Conservative Party Conference in Birmingham through Wednesday. The GBP/USD pair hit a daily high of 1.3115 backed by…
USDThe US Dollar was kept quiet when compared to most of its major trading partners particularly due to the Labor Day holiday. The Greenback still gained an element of support from vulnerabilities within emerging markets with overall tensions surrounding trade policies also an important factor providing net support. With the…
USD The US Administration still believes trade tariffs are proving beneficial to the American negotiation position and is considering to slap a new tax on approximately $200 billion worth of Chinese products. The resulting risk-off mood pushed the US Dollar higher against the Euro. Any trade deal, however, would need…