The Pound Sterling fell against rivals after markets were disappointed with the latest news on the Brexit negotiations. The UK Prime Minister was unable to cement a deal yesterday to even open talks with the European Union so that free trade could be put on the table. Politics in Northern Ireland played a large role in causing the rift. According to analysts, the real problem begins with the second round of trade-related negotiations because any of the EU’s 27 countries has the right to veto an agreement which it believes could harm or cause disfavor to them. As a result, progress is likely to be slow as the UK attempts to appease all of them.
As reported at 11:10 am (GMT) in London, the GBP/USD was trading at $1.3418, down 0.37%; the pair earlier hit a trough of $1.3369 while the peak for the session is currently at $1.3482. The EUR/GBP is up 0.12% and trading at 0.8843 Pence; the pair has ranged from a session low of 0.87952 Pence to a peak of 0.88681 Pence.
Dollar Looking for Momentum
In the US, the Dollar continues to find favorable sentiment on hopes that the tax reform bill will pass once both House and Senate versions are reconciled. At this point, says currency strategists, only strong data or additional positive momentum on the tax bill would push the greenback higher. Today’s release of Markit PMI data for November could help provide that boost if the readings are unexpectedly upbeat; currently, analysts are forecasting a slight rise in the Services Sector PMI and a slight fall in the Non-Manufacturing PMI.