Foreign Exchange Daily Market Update 04/01/2018

Thu, January 04, 2018

Sterling could shake off Brexit blues and hit $1.50 this year.

This we year we could see the pound shake off the Brexit blues and returns to pre-Brexit levels.

If an early Brexit transition can be meet and strong economic data surprises could boost sterling’s fortunes and even push the BOE into an interest-rate hike in the first half of the year, we could see sterling reach as much as $1.53 by year-end.

In the next three months we could see the pound climb to $1.40 against the dollar and ending 2018 nearly 3% above its close on the day of the June 23, 2016.

A rate hike from the BOE is not expected until February 2019, but if an agreement can be made in the first quarter and strong economic data leading to the repricing of BOE bank policy expectations. EU experts say a transition deal allowing the U.K. to continue trading with the bloc may be agreed as early as March.

The Pound has not moved much trading at $1.3537 against the dollar this morning. Sterling was little unchanged against the Euro trading at 1.124.

Data to look out today.   

13:30 USD initial Jobless claims.

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KBRFX was mentioned in the Essex Chronicle for the top 100 companies by turnover in Essex http://www.essexchronicle.co.uk/100-Essex-businesses-revealed-annual-survey/story-25140555-detail/story.html

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