Pound Higher on Brexit Agreement Hopes

Pound higherThe Pound Sterling held onto earlier gains in Asian trade after striking a six-month peak against the common currency Euro and gaining nearly 1% against the greenback. That is largely due to improved sentiment in the overnight hours as the possibility of the general election leading to a hung Parliament eased slightly. That sentiment shift came after Nigel Farage, the Brexit party leader, said that his group's aim was to focus on ousting anti-Brexit contenders. One currency strategist said that the statement all but cleared the way for the Conservative Party's passage of their withdrawal agreement. 

The EUR/GBP was trading at 0.8577 Pence, a loss of 0.0361% as of 11:15 am in Tokyo. The GBP/USD was higher at $1.2857, a gain of 0.0366%, off the session high of $1.28690.

Dollar Pressured as Trade Rhetoric Weighs

In the US, sentiment shifted for the greenback after the latest comments from Donald Trump on the ongoing trade rift between China and the US. The President has said that he had not previously agreed to a roll back of trade tariffs, which led FX traders to speculate that a resolution might take far longer than originally thought. President Trump is expect to speak in New York and traders will listen carefully for any reference to phase one of the trade talks. 

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.