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.

Free Trading Guides
EUR/USD
Bullish
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
Bearish
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • Heads Up:🇧🇷 BCB Focus Market Readout due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-05-25
  • 🇲🇽 Balance of Trade Actual: $-3.087B Expected: $2.04B Previous: $3.398B https://www.dailyfx.com/economic-calendar#2020-05-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.32%, while traders in US 500 are at opposite extremes with 76.77%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Tha105cXZ5
  • Heads Up:🇲🇽 Balance of Trade due at 11:00 GMT (15min) Expected: $2.04B Previous: $3.392B https://www.dailyfx.com/economic-calendar#2020-05-25
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.73% Gold: -0.29% Silver: -0.85% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/enjCuKY7xE
  • $SPX faces pivotal resistance, while #FTSE 100 continues to trade in rangebound fashion. Get your #equities technical analysis from @JMcQueenFX here: https://t.co/JXLZIbXzrQ https://t.co/37cpFa4skw
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.21% 🇬🇧GBP: 0.11% 🇦🇺AUD: -0.03% 🇳🇿NZD: -0.05% 🇨🇭CHF: -0.06% 🇯🇵JPY: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/W8OTNI6e3n
  • 🇮🇱 GDP Growth Rate QoQ 1st Est Actual: -1.8% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-05-25
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.93% France 40: 1.28% FTSE 100: 1.25% Wall Street: 1.10% US 500: 1.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Fn5s0UlxkI
  • Heads Up:🇮🇱 GDP Growth Rate QoQ 1st Est due at 10:00 GMT (15min) Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-05-25
British Pound Rally Starts Next Leg on Signs of Softening Brexit Stance

British Pound Rally Starts Next Leg on Signs of Softening Brexit Stance

2016-12-01 12:25:00
Nick Cawley, Strategist
Share:

Talking Points

- Brexit minister Davis says UK may consider paying for EU market access

- Eurogroup chief Dijsselbloem says EU may find a way for UK to Access internal market

- Softening Brexit stance pushes British Pound higher

The first signs of a thaw in UK/EU Brexit negotiations appeared on Thursday when senior officials from both camps spoke of finding a way for the UK to retain access to the European Union single market. After months of frosty relations, the more conciliatory tone adopted by UK Brexit Secretary David Davis and Eurogroup President Jeroen Dijsselbloem points towards a ‘soft’ Brexit, rather than the more potentially Pound-negative ‘hard’ option, when the UK leaves the European Union.

The British Pound, and more latterly the Euro, have both been under pressure in recent months as the respective sides of the UK/EU divorce refused to give any ground on their break-up demands. The EU has been unified in insisting that no negotiations could take place until the UK triggered Article 50, while the UK has refused to be buckle to EU demands to speed up the divorce process. This status quo has weighed heavily on Sterling as businesses became increasingly concerned about the make-up of the post-Brexit landscape, while the Euro sagged on worries about the loss of business from one of the bloc’s largest trading partners.

UK Brexit Secretary Davis said that the country wants “pretty free” movement of high-skill labor and that the UK’s goal “may or may not include single-market memebership.”

Eurogroup chief Dijsselbloem in turn said that the EU may find a way for the UK to acces internal markets, although the Brexit outcome will be the UK outside of the EU. Other news sources said that the UK may consider making EU budget contributions if it meant “getting the best deal” for goods and services.

Chart 1: EUR/GBP 1-hour Chart (November 22 to December 01, 2016 Intraweek)

British Pound Rally Starts Next Leg on Signs of Softening Brexit Stance

The British Pound pushed higher on the news, with EUR/GBP retracing back to levels last seen in early September. There may be a short-term opportunity forming in EUR/GBP, as Senior Currency Strategist Christopher Vecchio pointed out in the DailyFX Real Time News feed earlier today.

Ahead, the UK Parliament will reveal its decision on the legality of triggering Article 50 at a four day meeting starting on December 5. Judgment will be reserved at the conclusion of that hearing and follow at a later date, probably not for several weeks into January 2017.

Read more: British Pound Little Changed as UK Manufacturing Expansion Slows

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

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

DISCLOSURES

News & Analysis at your fingertips.