Pound holds up despite no deal

Andrew Masters FIBO Group

The British pound is under further pressure today after yesterday’s disastrous outcome on talks between the UK and the EU on conditions for the former to leave the European Union.

At 1.04pm (GMT) the British currency was trading at $1.3416 after trading as high as $13538 in yesterday’s trading session.

Markit services PMI from the UK hit the market earlier today at 53.8, below analysts’ expectations for a figure of 55 and well down on last month’s figure of 55.6.

The news only added to the pounds woes from yesterday when investors were left in shock as Theresa May failed to reach an agreement with the EU on critical points including how they would handle the border issue between Ireland, which will remain a member of the EU and Northern Ireland, which is part of the UK.

In the event of a non-agreement, the market was expecting the pound to fall a lot further but it seems with support moving in this morning around the $134 mark, many believe that an a agreement will be forged later this week

“Sterling continues to nurse its bruises from the news from Brexit talks,” said Valentin Marinov from Credit Agricole.

“The price action in the currency markets may suggest that a constructive outcome from the negotiations is still possible.” He added.

These thoughts may be a little optimistic as many see the deadline for a deal to be reached is this Friday and if one is not done, the chances of further progress at the EU summit on December 14^th look to be quit slim.

Author

Andrew Masters

FIBO Group

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Bitcoin Weekly Forecast: The worst may be behind us

Bitcoin price recovers slightly, trading at $65,000 at the time of writing on Friday, after reaching a low of $60,000 during the early Asian trading session. The Crypto King remained under pressure so far this week, posting three consecutive weeks of losses exceeding 30%.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.