GBP/USD finds a support
During the conference in Hague, German Chancellor Angela Merkel said that the EU would find a backstop solution by October 31 (Brexit deadline).
UK pound edges up on hopes for Brexit deal
On Tuesday, the Japanese yen went down on news that a Japanese chip manufacturer was purchasing an American rival for about $6.7 billion. Meanwhile, the UK pound held onto overnight profits right after the EU’s key negotiator backed expectations that a Brexit deal can be reached in the nearer weeks.
Eventually, most other key currencies were in tight ranges because market participants waited for further developments in international trade clashes, in particular on any American move to impose fresh levies on China in the face of heightened tension between the two leading economies.
On Tuesday, the UK currency jumped by 0.1% hitting $1.3041.
Market experts stress that if the talks for Brexit conclude on a positive note, it will definitely underpin the British pound.
The common currency was nearly intact, sticking with $1.1601. It rallied nearly 0.4% during the previous trading session, backed by an easing in worries over Italian debt.
Versus the UK currency, the euro hit 88.94 pence, having dived to a fresh one-month minimum of 88.91.
Policymakers at the BoE as well as ECB are generally anticipated to leave their policy settings intact at their respective gatherings on Thursday.
Tracking the greenback’s purchasing potential versus its primary counterparts the USD index stood still at 95.140, having lost 0.2% overnight.
News that Japan’s chip manufacturer Renesas was purchasing its American rival Integrated Device Technology for up to $6.7 billion put pressure on the Japanese yen.
The evergreen buck jumped by 0.3% hitting 111.41 yen due to the fact that market participants also cut some of their safe-haven holdings of the Japanese yen because the benchmark Nikkei 225 stock index tacked on by over 1% and also on expectations for a Brexit deal.
Additionally, the Australian dollar soared by 0.15% reaching $0.7123.
Similar
Bitcoin falls below the $10,000 level
The digital asset could not stick above the 50-day SMA for a long time.
Is there a chance for the NZD?
New Zealand is going to release the level of quarterly retail sales on August 23, at 1:45 MT time.
Latest news
Bitcoin dives 14%, slumping below $5,000
On Tuesday, crypto assets dived, with Bitcoin decreasing below the psychologically crucial $5,000 mark for the first time this year…
British inflation tacks on for the first time this year
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
Market updates on June 18
Welcome to Tuesday, people! Here’s your markets update ahead of the European trading session.
Deposit with your local payment systems
