Pound Higher as Brexit Draws Nearer to a Close

Barbara Zigah

Analysts are predicting a decline in the reading to 0.5% from 1.9% (on a month-over-month basis). 

BrexitThe pound sterling was higher against key rivals during the London trade on Tuesday as Forex players wait for further news on the Brexit discussions. The UK's chief negotiator has said that he expects a deal to be signed by early next week, citing Tuesday as the likely target date. Last week, one of the key architects of the deal was said to be poised to leave his position, which led to speculation that a deal was even more likely. That optimism is helping to push sterling higher, though analysts point out that gains are likely limited as markets await more news of the impact of the spreading coronavirus on the UK economy.

In London trading as of 11:17 am, the EUR/GBP was trading at 0.8961 pence, a loss of 0.2504% and moving off the session trough of 0.89528 pence. The GBP/USD was higher at $1.3260, up 0.5222%, with the pair ranging from a low of $1.31849 to a peak of $1.32642. The GBP/JPY was also higher at 138.1570 yen, up 0.1377% and moving away from the session high of138.340 yen.

Market Focus on Data and Events

Certain data will be likely to move events, with the US Census Bureau to announce news on October retail sales. From the latest poll of economists and analysts, it's clear that they expect the news to be disappointing; analysts are predicting a decline in the reading to 0.5% from 1.9% (on a month-over-month basis). Retail sales for the same period, excluding auto sales, is forecast at 0.6%, down from the previous reading of 1.5%. Also likely to be a market focus are the various speeches to be given by key central bankers, including the ECB's Christine Lagarde, the BoE's Andrew Bailey, the Fed's Jerome Powell and the BoC's Tiff Macklem. All of these major players will hopefully offer some clues as to the banks' positioning regarding monetary policy and the economic threat of COVID-19.

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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