Loading...

Pound Volatile as Fifth Round of Brexit Talks Conclude

#News #AUD #CAD #EUR #GBP #NZD #USD
Email share     Facebook     LinkedIn    Twitter

Sterling


GBP/USD 1 Week Chart

The Pound (GBP) experienced a bit of a rollercoaster on Thursday as the fifth round of Brexit talks concluded with  EU’s chief negotiator, Michel Barnier reporting that there was a ‘deadlock’ in negotiations over the UK’s divorce bill, prompting Sterling to plummet.

However the Pound quickly recovered by the end of the session as Barnier suggested that the EU would be willing to offer the UK a two-year transitional deal.

Euro

After plunging late yesterday morning, the Pound Euro (GBP EUR) exchange rate rocketed back up by around a cent as Barnier suggested that the EU would be open to a transitional deal with the UK.

Despite ending the session lower, investors were still upbeat towards the single currency yesterday as data showed that Eurozone Industrial Production surged past expectations in August.

However markets soured a little on the Euro this morning following a speech by European Central Bank President Mario Draghi, in which he suggested that interest rates may remain at record lows ‘well past’ the end of its current stimulus programme.

US Dollar

Sterling also rallied against the US Dollar (USD) late on Thursday as markets welcomed the suggestion that the UK could be granted a two-year transitional deal after Brexit.

However, the ‘Greenback’ may rebound itself later today following the release of a slew of US economic data.

The main focus will likely be on the latest US CPI figures, with economists forecasting that inflation will have risen from 1.9% to 2.3% in September, hopefully putting it closer towards the Federal Reserve’s target range.

Canadian Dollar

Despite wobbling in the early afternoon yesterday, the Pound Canadian Dollar (GBP CAD) exchange rate closed the session around half a cent higher as an upbeat reaction to the offer of a possible transitional Brexit agreement drove Sterling higher.

Australian Dollar

While Sterling was able to recover from a brief fall against the Australian Dollar (AUD) on Thursday, the Pound failed to push any higher overnight as the ‘Aussie’ was strengthened by an impressive trade report from China.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate told a similar story to its antipodean cousin yesterday as a sharp rise in Chinese imports in September prevented the pairing from recovering the entirety of the day’s losses.

 

Further Reading

 

Coronavirus spread fears linger – USD strong – AUD at 11 year lows

This week the US Dollar was touching three-year highs when valued against a basket of major currencies. The greenback’s traditional role as one of the safe-haven currencies is helped by a domestic economy that is largely immune to the threats of the coronavirus.

Last update: 22 Feb, 2020

Coronavirus unnerves currency markets

The strong start to the year for “risk-on” currencies is already a distant memory.

Posted: 3 Feb, 2020

New Year Optimism Retreats on US/Iran Tension

The threat of a proxy war between the US and Iran in Iraq has pared back some of the recent gains of “risk-on” currencies.

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.
 

Get a Better FX Deal when you Send and Spend Abroad.

 

Do NOT follow this link or you will be banned from the site!