Foreign Exchange Daily Market Update 30/08/18

Thu, August 30, 2018

Pound rises to a 3-week high as EU chief negotiator says a unique deal on Brexit.

Sterling rallied above $1.30 as analysis became more optimistic on the chances of a Brexit deal before the U.K. exits the EU in March.

Sterling rose to its strongest level in three weeks as the chief negotiator Michel Barnier, said the EU was prepared to offer Britain an unprecedented partnership, different from that with any third country.

This could be the best, even though it’s early days.  It could still easily go further as the market was very much becoming used to a no-deal Brexit. Hence anything positive or anything that dampens such fears triggers position squaring.

The market had been increasingly price in, of the risk that Britain could leave the EU without a deal, leaving sterling headed for its fifth monthly loss. It seems more positive after British politicians have increasingly been talking of the prospects of no deal

The pound gained as much as 1.1% to $1.3008, the strongest level since Aug. 6.  Sterling strengthened to 1.112 against the Euro.  

Data to look out today.   

13:30 USD initial Jobless claims.

CURRENCY PAYMENTS MADE SIMPLE

PRESS RELEASE

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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