The latest developments on the Brexit front have put the Sterling on the sideline following daunting reactions of EU leaders over a Brexit deal submitted earlier last week. Yet Thursday's meeting between British and Irish Prime Ministers Boris Johnson and Leo Varadkar boosted the British pound as a wave of optimism about an orderly Brexit increased. Although no further details of potential solutions concerning the Northern Ireland border have been revealed, the unexpected joint statement confirming “a pathway to a possible deal” should maintain GBP heavily solicited ahead of next week EU Council meeting starting next Thursday, a major event that should weigh on the Brexit fate.

Despite limited progress in the current Brexit impasse, both sides should resume talks today as well as during the weekend with debates probably focusing on a customs partnership solution that would allow Northern Ireland to exit the EU customs union with the UK while enforcing EU customs rules and tariffs on goods entering the region. Nevertheless, risks of a hard Brexit stay high as an exit proposal needs to be validated by EU leaders during the two-day summit starting on 17 October 2019 while UK Parliament special sitting on 19 October 2019 should either validate the deal agreed or request PM Johnson to ask the EU for another article 50 extension under the Benn Act. However, it is likely that, in this scenario, the British Prime Minister would bypass the appeal of MPs by sending two separate letters, the first requesting an extension and the second invalidating it, paving the way towards a no-deal Brexit. Following the GBP rebound, downside risk is likely to increase looking forward.

This report has been prepared by AC Markets and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by AC Markets personnel at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD clings to 3.5-week’s high, trades above 1.1000 figure

The pair is challenging the 1.1047 resistance. EUR/USD bull recovery from 34-month lows remains intact. Further coronavirus headlines are awaited.


GBP/USD hits new 2020 low and bounces amid Brexit rhetoric, coronavirus headlines

GBP/USD is trading above 1.2800 after hitting a new 2020, nearing the 1.2700 figure, as concerns about a no-trade-deal Brexit are weighing on the pound. Modest recovery seen in USD during the American session keeps the bearish pressure intact.


XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors