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Pound Rallies on Hopes Brexit Deadlock could be Broken

#News #AUD #CAD #EUR #GBP #NZD #USD
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Sterling


GBP/USD 1 Week Chart

After fluctuating at the end of last week’s session the Pound (GBP) is striking higher against its peers in early trade this morning on hopes that a meeting between Theresa May and EU officials later today could go some way towards breaking the current ‘deadlock’ in talks.

With the EU set to make a decision on whether to allow talks to move on to the second stage later this week, the move is the final chance for the UK to persuade the EU to start trade talks before the end of the year.

This week is pretty busy in terms of UK data, with the most stand-out data expected to be the UK’s latest CPI report on Tuesday, with an expected rise in inflation likely to lend further gains to Sterling as it increases the odds of a rate hike from the Bank of England (BoE) next week.

Euro

The Pound Euro (GBP EUR) exchange rate is advancing again this morning, extending its gains from the close of last week’s session as markets hope May’s dinner will deliver the breakthrough needed in Brexit negotiations.

Meanwhile, the single currency is under pressure this morning over growing uncertainty in Spain as reports suggest that the Catalonian government’s independence statement was insufficient and that Madrid may now move to impose direct rule on the region.

US Dollar

Sterling stabilised against the US Dollar (USD) this morning, holding onto the gains made last week as the ‘Greenback’ remains subdued in the wake of a lacklustre US inflation report.

Investors shied away from the US Dollar on Friday as domestic inflation failed to meet expectations, with core inflation remaining flat at 1.7% in September and suggesting that the slowdown in inflation may not be temporary, as some members of the Federal Reserve predicted.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate is also rallying this morning as investors suggest that Theresa May’s dinner meeting with EU officials could lead to meaningful progress in Brexit talks.

However, a pick-up in oil prices could see the ‘Loonie’ begin to push back later today, should crude be able to hold on to its gains.

Australian Dollar

Sterling is trending higher against the Australian Dollar (AUD) during the Asian session today as the pairing began to recoup the losses seen at the end of last week following the dip in the US Dollar, with the rally being aided by hopes of a possible breakthrough in Brexit talks later today.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate was meet by volatility again this morning as the political uncertainty in New Zealand continues to dictate sentiment towards the ‘Kiwi’.

 

Further Reading

 

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Last update: 8 Jan, 2020

  

Posted to: News

 
 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.
 

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