Pound Steadies as Brexit Talks Continue

BrexitIn London trade, the Pound Sterling remained relatively steady as analysts assess the likely sentiment shift if there is a Brexit deal. For the most part, currency strategists say that the possibility of a deal has already been baked into pricing for the Pound, so any confirmation of a deal is likely to provide only a modest, knee-jerk reaction. Even fundamental data isn't having the same impact that it would have had Brexit not continued to be a peripheral factor. Michel Barnier, the chief negotiator for the EU, is currently in London for the Brexit talks, with plans to head back to Belgium mid-week to continue the discussion.

As of 10:29 am in London, the GBP/USD was trading at $1.3016, down 0.01%, with the pair ranging from a trough of $1.30007 to a high of $1.30456 in this session. The EUR/GBP was trading higher at 0.9072 Pence, a gain of 0.0717% and sliding away from the session peak of 0.90857 Pence. The GBP/JPY was 136.245 Yen, down 0.1539%, moving off today's low of 136.139 Yen.

Dollar Could Benefit from Safe Haven Bid

Analysts expect to see the US Dollar benefiting from safe haven demand as FX traders exercise caution given the rising number of cases of Covid-19 and the uncertainty of the political outcome of the US presidential race. The GOP members of the US Senate late yesterday confirmed a new Supreme Court judge, despite objections from Democratic leadership and the public at large. The GOP's failure to push through a Coronavirus stimulus packages leaves in doubt their ability to help businesses and individuals struggling with the second wave of infections and deaths. The USD/JPY was trading at 104.6500 Yen, down 0.18%, while the EUR/USD was higher at $1.1816, up 0.0203%.

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.