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October

Breaking news – Sterling strengthens on fresh Brexit deal hopes

Published: Friday 05 October 2018

  • Climbing US Dollar weakens currencies in Asia Pacific
  • More to markets than one data release…
​​By Charlie Horsley

Sterling perked up yesterday as investors began to believe that the UK and the European Union were moving closer to a deal for Brexit and solving the Northern Ireland-Ireland border dilemma. The Pound has risen to 1.3050 against the US Dollar and 1.1325 versus its close competitor, the Euro, also rising against a number of other currencies. This morning, the Pound received an additional boost from an EU diplomats report, which claimed that the Brexit divorce deal was very close. We have been here in the past and had the reports quashed days later, but for now, this represents great news and an excellent opportunity to sell Sterling. This news has only just dropped, so it will be worth monitoring throughout the day.
 
Climbing US Dollar weakens currencies in Asia Pacific
 
As the US Dollar strengthens on the back of strong treasury yields and expected solid employment data later today, we have seen the recently stronger Australian Dollar and already pressured New Zealand Dollar weaken on risk aversion in Asia Pacific.
 
More to markets than one data release…
 
The focus for the markets today will be on more news from the Brexit negotiations and with the Non-Farms data expected to be good from the US it’s a question of how fast wage growth has been. It’s not yet a given that the US Dollar will get further validation, though. The reaction in the currency markets is not that straightforward. We’ll have to see how treasury yield and stocks respond to the data at the same time.
 
It's likely to be a busy one for a whole host of currencies today – keep in touch and keep watch if you’re planning to buy or sell anytime soon. We’re here to help until 5.30pm today.

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