Trade ideas for June 14-18
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?
UK pound goes up on Brexit agreement
On Monday, the UK pound went up because a Sunday Times report told that the United Kingdom was approaching a deal for breaking up with the European bloc and an all-UK customs pact would be part of it.
With negotiations at an impasse five months before the UK leaves the EU, traders are getting anxious and the UK pound is moving steeply on any news of a probable breakthrough.
For the last 10 months of this year the UK pound has lost nearly 3.6%.
However, on Monday, the UK pound managed to ascend by 0.3% hitting a 10-day maximum against the evergreen buck - $1.3065. Against the common currency, it rallied to 87.33 pence, which is its highest outcome since October 11.
The UK pound was backed by a report over the weekend, which told that an all-UK customs deal is going to be written into the legally binding the pact, which governs the United Kingdom’s withdrawal from the European bloc.
It would suggest an Irish "backstop" deal to dodge a hard border between the Irish republic and the UK province of Northern Ireland, isn’t required, as the Times informed. Eventually, the issue has appeared to be the key obstacle to Brussels and London agreeing a deal.
On Thursday, the previous week the UK currency had its best day of 2018 versus the evergreen buck on Thursday.
It’s believed that an agreement with Brussels on the terms of divorce will remove a big uncertainty overshadowing the British economy and the Bank of England as it attempts to tame inflation.
This week the European bloc and the UK government official have played down expectations for an inevitable Brexit deal, stressing that while a pact is close the two sides still have much to do.
Similar
The GBP may be supported
Great Britain will publish its trade balance for April on June 11, at 09:00 MT time.
Will the pound keep standing?
UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
Latest news
Oil Reached 2018 Highs, German Elections Affect Euro
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
What Will Move the Market on September 27 – October 1?
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey has Decreased Interest Rates, But is it a Buy?
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.
Deposit with your local payment systems
