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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The DXY continues to build on a rebound off long-term uptrend support and the Majors are poised for some decent moves this week. Get your #DXY market update from @MBForex here: https://t.co/bjbs0gYT6I https://t.co/0OapScLca9
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: France 40: 0.50% Germany 30: 0.49% FTSE 100: 0.32% US 500: -2.12% Wall Street: -2.95% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/nultu65SC6
  • UK PM Johnson is to announce a 10pm closing time for pubs tomorrow, according to the Sun
  • NI First Minister says local COVID 19 restrictions currently in place will apply to the whole of Northern Ireland from Tuesday
  • Heads Up:🇺🇸 Fed Brainard Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-21
  • Technical Trade Levels: #Dollar, #Euro, #Sterling, #Yen, #Loonie & #Gold - Webinar Archive - https://t.co/4s1mlKp2rr
  • that rebuffing in $GBPUSD last week was Wed-Friday as price action built in an evening star formation. Next big support on my chart ~2644-2674 https://t.co/v7yvMVokmn https://t.co/a4uVJj9rY6
  • oy what a start to the week for cable. $GBPUSD right back down to support. soundly rebuffed at 1.3000 resistance last week https://t.co/3dBodYYIwT https://t.co/KEoi6Vjb04
  • @JohnKicklighter https://t.co/EaGYJacfXL
  • Looks like markets have a 'case of the Septembers' today. I think there is more than seasonality at work for $SPX/$VIX but it certainly adds to the environment https://t.co/VX29tT1UfL
British Pound Hits Two-Month Highs On New Brexit Optimism

British Pound Hits Two-Month Highs On New Brexit Optimism

2017-11-30 05:00:00
David Cottle, Analyst
Share:

Talking Points:

  • GBP/USD has risen to its highest point since September
  • Persistent press reports of Brexit -negotiation progress have helped it
  • Caution remains warranted though. Talks have been torturous and will probably remain so

Are you new to theGBP trading world? Our beginners’ guide is here to help

The British Pound rose to levels not seen since September on Thursday thanks to hope that some progress is at last being made in the torturous Brexit negotiation process.

Reports Wednesday suggested that UK’s vexed “divorce settlement” from the European Union was approaching agreement. They were followed up by others, citing negotiators, which said that the at-least-equally prickly question of the UK’s land border with Ireland was also moving forward. While tangible progress remains scant, there does seem to be at least an impression that talks could stop stalling and possibly move along to trade and the UK’s post-Brexit position. This is something the markets would dearly like to see.

Sterling investors certainly welcomed this prospect. GBP/USD climbed to 1.3479, it highest point since late September.

British Pound Hits Two-Month Highs On New Brexit Optimism

EUR/USD also tracked the Pound upward but at a less dramatic pace.

Of course, the UK currency will remain extremely vulnerable to negotiation news-flow in the days and weeks ahead. If the process so far has taught markets anything it’s that there won’t be linear progress. Setbacks will abound. Still, for the moment the scenario under which the UK crashes out of the EU without any sort of deal at all seems distant. This was something of a nightmare scenario for markets because of the myriad questions it would leave unanswered, both for the UK and the 26-member bloc.

GBP/USD has now risen for nearly all of the past fourteen sessions, helped admittedly by some general US Dollar weakness last week as the US Federal Reserve seemed more worried than it had been by inflation’s weakness.

British Pound Hits Two-Month Highs On New Brexit Optimism

It remains in a clear uptrend channel form the lows of mid-November and, indeed, has just attempted to break out of that range to the upside.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter: @DavidCottleFX

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

DISCLOSURES