Pound Gets a Reprieve on Brexit Hopes
Hope of a deal for the UK government has helped to push the Pound higher against the US Dollar. Last Friday, the GBP/USD lost 2 cents, the largest single day's loss in 2018, on comments from the Prime Minister who said that the UK government and the EU negotiators were at an impasse and that new proposals were needed. Dominic Raab, the UK's Brexit Secretary, expressed his confidence that a Brexit deal would be reached nonetheless. Analysts don't expect investors' sentiment to shift too much, however, given the upcoming Tory party conference.
Germany IFO Surveys Lift Euro
In the Eurozone, the latest economic data from Germany helped to push the Euro higher. The September IFO reports were all unexpectedly upbeat, with the business climate, expectations and current assessment coming in with readings of 103.7, 101.0 and 106.4, above the forecasts of 103.2, 100.2 and 106.1. The EUR/USD was trading higher at $1.1769, up 0.18%; the pair earlier hit a session high of $1.17747 while the low is at $1.17243. Later today, the head of the European Central Bank, Mario Draghi, will be speaking at the European Parliament. Though analysts don't expect any surprises, it will still be keenly scrutinized.