Pound Strays from 6-week High

Barbara Zigah

The British Prime Minister last week left markets in doubt that a deal could be reached, but many believed it was simply true to form Boris Johnson rhetoric.

England The Pound Sterling remains within striking distance of yesterday's 6-week peak on news that the Brexit talks were about to resume. The EU's chief negotiator told the media that he believed an agreement was within reach. That news helped to shift sentiment for the Pound, and markets are optimistic that there will be a positive outcome by the deadline. The transition period end is December 31st, and the UK government needs to have a deal in order to avoid commerce and trade conducted under WTO rules that would mean the implementation of tariffs and quotas. The British Prime Minister last week left markets in doubt that a deal could be reached, but many believed it was simply true to form Boris Johnson rhetoric.

In London trading as of 11:14 am, the GBP/USD was trading at $1.3101, down 0.312% and edging away from the Wednesday high of $1.3177. The EUR/GBP was higher at 0.9024 Pence, a gain of 0.0377%; the pair has ranged from 0.90100 Pence to 0.90469 Pence in today's session. The GBP/JPY was lower at 137.255 Yen, a loss of 0.1252%.

US Labor Data and Debate in Focus

Market attention will likely focus on the US later today. The US Labor Department will be releasing its latest data on claims for unemployment benefits. In the most recent polls, analysts expect to see initial jobless claims to fall to 860,000 for the week ended October 16th, down from the previous 898,000. Continuing claims for the week ended October 9th are also expected to see a decline with analysts forecasting 9.5 million, down from the previous data of 10.8 million. The final presidential debate is also likely to be in focus with less than two weeks until the election.

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.

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