Foreign Exchange Daily Market Update 12/09/18

Wed, September 12, 2018

Hopes of a Brexit deal are supporting the pound.

Sterling came close to a three-year low against the Euro even after Britain’s employment market showed signs of endurance following the UK’s decision to quit the EU.

Many analysts see any further BOE policy tightening have cooled in recent weeks following August’s quarter-point interest-rate increase, with the next hike not fully priced in until the end of 2019.

The strong data supported the BOE’s decision to tighten policy last month.  Sterling has failed to reflect the stronger U.K. data and higher interest rates in recent months, which could mean there is room for it to catch up if Brexit risks ease

Sterling strengthened this week after Michel Barnier the EU chief negotiator said a deal was realistic by November, although strong U.K. growth numbers and above-consensus wage data, sterling has struggled to hold gains above $1.30.

Sterling fell to $1.3017 after touching $1.3043 against the dollar this morning, the pound traded at €1.1231 from €1.1249 against the Euro.

Data to look out today.  

Not much data due out today.

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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