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.

 

 As reported at 11:26 am (BST) in London, the GBP/USD was trading higher at $1.31, a gain of 0.22% and well-off Friday's low of $1.3023. The EUR/GBP is down 0.26% and trading at 0.8967 Pence; the pair ranged from a trough of 0.89548 Pence to a peak of 0.89960 Pence.

 

 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.

 

 

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.