Anything other than no-deal should be GBP-supportive – Societe Generale

Dhwani Mehta FXStreet

Analysts at Societe Generale offer their view on the pound, in light of the FOMC meeting and the ongoing Brexit chaos.

Key Quotes:

"Wednesday's FOMC meeting is being written up as the week's big event, though a rate change is highly unlikely. We think they'll confirm that the Fed's balance sheet run-off will end this year, though they may not give us a lot more detail than that. As for rate policy 'patience' is the watchword.´

The biggest driver, however, will be Brexit. There will be a meaningful vote on Mrs May's withdrawal agreement tomorrow, but only if she thinks it's likely to pass. The Times leader says "May woos Brexiteers but still faces defeat" in which case uncertainty drags on. Anything other than no-deal should support sterling, but uncertainty can hold it back for now."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.