News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • 🇬🇧 Markit/CIPS UK Services PMI Flash (OCT) Actual: 52.3 Expected: 54 Previous: 56.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 🇬🇧 Markit/CIPS Composite PMI Flash (OCT) Actual: 52.9 Expected: 53.9 Previous: 56.5 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 🇬🇧 Markit/CIPS Manufacturing PMI Flash (OCT) Actual: 53.3 Expected: 53.1 Previous: 54.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:🇬🇧 Markit/CIPS Composite PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 53.9 Previous: 56.5 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:🇬🇧 Markit/CIPS UK Services PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 54 Previous: 56.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Flash (OCT) due at 08:30 GMT (15min) Expected: 53.1 Previous: 54.1 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 🇵🇱 Unemployment Rate (SEP) Actual: 6.1% Expected: 6.1% Previous: 6.1% https://www.dailyfx.com/economic-calendar#2020-10-23
  • 💶 Markit Manufacturing PMI Flash (OCT) Actual: 54.4 Expected: 53.1 Previous: 53.7 https://www.dailyfx.com/economic-calendar#2020-10-23
  • 💶 Markit Composite PMI Flash (OCT) Actual: 49.4 Expected: 49.3 Previous: 50.4 https://www.dailyfx.com/economic-calendar#2020-10-23
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.62%, while traders in NZD/USD are at opposite extremes with 71.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/HNyEZ25b4K
Brexit Briefing: Pound Stoic As Tensions Rise Between London, Brussels

Brexit Briefing: Pound Stoic As Tensions Rise Between London, Brussels

2017-05-03 15:34:00
Oliver Morrison, Analyst
Share:

Talking Points

- The British Pound has had a volatile day on more Brexit headlines.

- But GBPUSD continues to knock on the door of that psychologically-important 1.30 area.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

Would you like to know more about trading the financial markets?DailyFX’s trading guideshould be your first stop.

The British Pound has had a volatile trading day Wednesday. First was the report in TheFinancial Times claiming that the European Union has raised the UK’s Brexit bill to an upfront payment of up to €100 billion, following a hardening stance from Germany and France.

Then, publishing his Brexit mandate, the EU chief negotiator Michel Barnier said the EU wants a "cordial" Brexit and has no desire to punish the UK, but its “accounts must be settled". He added that the outcome of June's general election – which boosted the Pound on hopes that it will ultimately lead to a softer Brexit – “would not change anything”.

The UK was obstinate in response. “They’ve offered 50 billion… 60 billion… 100 billion… we’ve actually not been given an official number,” said the UK’s Brexit Minister David Davis. “Whilst we’ll meet our international obligations, we’ll meet the legal ones, not the best guesses of the commission.”Asked if a figure of €100billion was acceptable, he replied: "We will not be paying €100billion. We’ve come to end paying vast sums of money every year to the European Union.”

There’s much to-and-froing about the actual size of the UK’s so-called ‘divorce bill’. But the point, for traders at least, is this: the heftier the bill, then the less soft the UK’s Brexit will be, and the more difficult the whole process becomes. So any suggestions that the UK will be made to pay a huge sum to leave the union are seen in Sterling crosses. Indeed, GBPUSD dropped more than 50 pips overnight after leaked reports of last week’s meeting between UK Prime Minister Theresa May and EU Commission President Jean-Claude Juncker suggested a fractious atmosphere to the opening round in Brexit talks, and lost another half a cent in early trading following the FT report.

But the Pound remains strong despite the dips, and cable continues to knock on the door of that psychologically-important 1.30 area which, if surpassed, would signal a mid-term bullish reversal in the Pound against the Dollar.

Good data this week are helping. After yesterday’s strong UK manufacturing PMI, Sterling received a further boost today from a positive construction PMI reading. The more important service-sector PMI is released tomorrow at 0830GMT.

Brexiters, meanwhile, are banking that the squabbles over the UK’s Brexit bill are just hot air. Ignore Juncker’s petulance, they say. The rest of the 27 EU countries want strong trade links with a strong UK that wants to buy their products and therefore will not risk that relationship. Pound bulls will be hoping they are right.

GBPUSD 15-Minute Chart (Intraday May 03)

Brexit Briefing: Pound Stoic As Tensions Rise Between London, Brussels

Chart by IG

Upcoming GBP Event Risk

Events

Date, Time (GMT)

Forecast

Previous

Markit/CIPS UK Services PMI (APR)

May 03, 0830

54.5

55

UK Net Consumer Credit (MAR)

May 03, 0830

1.2bn

1.4bn

UK Mortgage Approvals (MAR)

May 03 0830

67.3k

68.3k

Markets

Index / Exchange Rate

Change (Exchange Hours/GMT Session Rollover)

Market Close/Last

FTSE 100

-0.30%

7,228

DAX

0.10%

12,519

GBP/USD

-0.28%

1.2904

EUR/USD

-0.16%

1.0913

EUR/GBP

0.11%

0.8457

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Follow Oliver on Twitter @OPWMorrison

If you’re looking for trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017

If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment Data

Would you like to know more about financial market trading, or to get live coverage of major economic events? TheDailyFX webinarsare for you.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES