Foreign Exchange Daily Market Update 21/08/18

Tue, August 21, 2018

Sterling may have weakened but some analysts are hopeful.

Sterling has fallen by more than 4% in the last three months, propelling analysts to slash predilections, as fears that Britain could fall out of the EU without an economic deal. Still, however some analysts are keeping faith, that the two sides will reach an agreement by year-end.

Sterling is on track for a 5^th straight drop and touched a 14-month low of $1.2662 earlier this month, with a series of buoyant U.K. economic reports doing little to boost the currency. A strong dollar has been weighing the pound in recent months and the fear of a no-deal.

Some analysts believe that there will be a deal between the U.K. and the EU and that Theresa May will still be in Number 10 come the end of the year. On that basis, it is easy to see sterling recovering, perhaps through the $1.30s, if not $1.40

We could see sterling pound rise to $1.40 by the fourth quarter, and to $1.41 by the first quarter of 2019. The pound rose by much as 0.4% today, as the U.K. and the EU resumed Brexit talks in Brussels

Sterling rose to 1.283 after touching 1.2855 this morning against the dollar, GBP was unchanged against the Euro trading at 1.113.

Data to look out today.   

Not much data due out today.

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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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