Free Trial

Sterling Strong On Sovereignty Pledge

FOREX

The to-and-fro of Brexit talks continue to exert influence on GBP, which is outperforming all others in G10 early Wednesday. EU negotiator Barnier appeared to formally agree on and assert UK sovereignty, removing a further blockage to the resumption of trade talks between the two parties. While rules surrounding fisheries and a level playing field still need to be agreed on, the market is still erring toward the likelihood of a deal.

GBP/USD rallied convincingly through the $1.3012 50-dma in response, with $1.3083 the next upside target.

The USD is still on the backfoot, prompting another multi-week low in the USD index. The move lower in the greenback comes despite weaker equities today, with US futures indicating a lower open later today.

Canadian retail sales and inflation data are the highlights Wednesday. Speaker highlights include BoE's Ramsden, ECB's Lane as well as six further Fed speakers.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.