Renewed Brexit Hopes Lift Pound

Barbara Zigah

The Pound sterling moved higher during London trade today as a Brexit deal seems to finally be lining up. 

Some media reports are suggesting that the leadership in both the UK and EU were closer to inking a deal than had been initially presumed; poll makers are now putting the prospects of a successful Brexit deal at 66%. Yesterday, both the British Prime Minister and the President of the European Council agreed that though there were some significant differences, that a lot of progress had already been made toward the trade deal. With optimism higher, the Pound has benefited by heading back toward the $1.30 level against the greenback.

In London trading as of 11:26 am, the GBP/USD was trading at $1.2918, sliding away from the session peak of $1.29712 while the low was recorded at $1.29050. The EUR/GBP was higher at 0.9107 Pence, a gain of 0.022%; the pair ranged from a low of 0.91094 Pence to a high of 0.91214 Pence.

Dollar Mixed Despite Stimulus Talks

In the US, the Dollar's boost from news that the President is now amenable to re-opening talks for a second stimulus package was somewhat short lived. Analysts had said that Trump's decision earlier in the week to halt the negotiations gave Joe Biden additional momentum in the upcoming Presidential election; they believe that consideration may have resulted in Mr. Trump's turnaround. Analysts are in agreement that a win by Biden could have a positive impact on the US economy as they envision his plan to include a quick injection of cash and a more aggressive fiscal policy to include increased spending. The EUR/USD was trading at $1.1765, up 0.0213%, while the USD/JPY was trading at 106.0120 Yen, up 0.04%.

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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