Long Brexit road ahead for sterling

22 February, 2016

There is no doubt about the standout currency this morning, with sterling having gone up the escalators into Friday’s close and down the lift-shaft as the start of the Asia session. Friday’s up-move came on the back of the late evening deal between the UK and the EU on the UK’s revised relationship with the EU. But with yesterday showing the influential London Mayor (and perceived successor to UK PM Cameron) coming out in favour of the UK leaving, then sterling took a more bearish view. Between now and 23 June, we will have 191 days during which the issue is never far from the headlines. For sterling, as I’ve said before (see “Will Brexit Break Sterling?”), this won’t be a fun time and it’s more the uncertainty that will weigh on the currency, rather than investors taking a view on the outcome and the implications for the economy, which are hard to argue either way.

Despite sterling’s move lower (from 1.44 to 1.42 on cable), the dollar is still mixed in Asia. EURUSD has retraced below the 1.11 level, but the Aussie is pushing towards the 0.72 level, again showing its resilience to global developments. For this week, we have preliminary PMI data in the Eurozone released this morning, with some mixed readings being seen for France and Germany. Stocks at least are opening firmer and with no major central bank meetings this week, we are likely to see market sentiment in FX driven by equities and commodities.


Source link  
UK Consumer Price Index data

Eurozone Markit Manufacturing PMI (May) is expected to come in at 56.0 from 56.2 previously. Markit Services PMI (May) is expected at 54.6 v 54.7 previously...

FOMC Members will be speaking today

This shows a healthy economy with the 2018 average at a higher level than previous years. Slip under zero can cause a market reaction but is not...

Fed Speakers Take Centre Stage

Fed Member Mester is due to speak at the Central Banking Series hosted jointly by the Global Interdependence Center and Bank of France, in Paris...


Markets Steady Ahead of Euro Open

After further increases in stock markets yesterday, the market is pausing and consolidating ahead of European trading. Asian equity markets are in the green...

Oil Inventories to Show a Draw

Expectations (Apr) are expected to be released with a prior reading of 16.7. This data has been weakening since a reading of 52.0 was recorded in...

Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh...


Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...

Markets fall after more tariffs proposal

Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...


In the past 24 hours Bitcoin has lost -5.2% and reached $7876.69. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.6235% and is now at $1.1765. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -10.71% and is now at $620.154. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM88%
3HYCMHYCM86%
4FxProFxPro82%
5FIBO GroupFIBO Group81%
6FXCMFXCM71%
7HotForexHotForex70%
8XMXM69%
9Alfa-ForexAlfa-Forex68%
10Grand CapitalGrand Capital65%
  


Share: