Foreign Exchange Daily Market Update 10/10/18

Wed, October 10, 2018

Sterling looks set for big rally as Brexit deal advances.

Britain is close to reaching a deal on Brexit, which could see a potentially historic increase in the pound.

An impending deal is looking more likely. The chances of a no-deal hard Brexit are very low, and a deal in the coming weeks will likely allow the pound to rally.

Sterling is very under-valued.  It is still reasonable to view $1.55 as a valid fair value. That would be an 18 % rise from the $1.3139 it traded at this morning.

With one week to go ahead of the crucial summit, where EU leaders could determine the outcome of Brexit, confidence is growing that a deal may be in sight. British and EU officials are locked in talks in Brussels over a compromise that could see the U.K. remain temporarily in the EU’s customs regime.

Hopes for a deal already have helped the pound gain almost 4% since mid-August.

The pound may be volatile in the short-term, but its positive long-term outlook is more certain.  The upside is considerable, against both the dollar and the euro.

Sterling traded at $1.3151 after touching 1.3181 against the dollar. The pound fell to €1.1439 after spiking at €1.1463 against the Euro this morning.   

Data to look out today.   

Not much data 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

Data Releases