Long Brexit road ahead for sterling

February 22, 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.

Publication source
FxPro information  FxPro reviews

September 27, 2016
The US election beta
Having obsessed about an event that did not happen this month (a Fed tightening), markets now turn to obsessing about an event that will happen, namely a change of US President...
September 27, 2016
Oil prices are moving towards stabilisation
The oil prices start the week on an upbeat note as the informal OPEC meeting may end with a positive agreement for the oil market, which could resolve in production kerbs and freeze said the Algeria’s Energy Minister on Sunday...
September 27, 2016
US politics cast shadow over NZD
It's been an interesting start to the week as politics is looking likely to take centre stage amongst a market which is becoming increasingly worried over the result of the US presidential election...

FBS Rating
Tickmill Rating
Grand Capital Rating
FIBO Group Rating
FXTM Rating
XM Rating

Empire Option Rating
IQ Option Rating
Porter Finance Rating
Binary Brokerz Rating
OptionsXO Rating
OptionBit Rating