UK
AU
CA
HK
NZ
SG
USDaily & Weekly Market News
Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools.
2019 © UKForex Ltd. All rights reserved. *Third party fees may apply.
Terms of Use Privacy Policy Customer Agreement Cookie Policy Complaints Policy
©UKForex Limited (trading as “OFX”) is: registered in England and Wales (Company No. 04631395). Our registered office is at 4th Floor, The White Chapel Building, 10 Whitechapel High St, London E1 8QS. We are authorised by the Financial Conduct Authority as an Electronic Money Institution (Firm Ref. No. 902028).
Pound falls to one month low as preparations for no-deal are stepped up
GBP - British Pound
The pound fell close to 1.22 vs. the US dollar yesterday amid increased concerns that the UK will be leaving the EU without a deal. The PM and German Chancellor spoke yesterday, the upshot of which being that reaching a withdrawal agreement is impossible if the EU demands N. Ireland remains in the customs union.
The pound has recovered this morning, though. A Times report suggests that the EU could be willing to make a major concession by "providing a mechanism for the Northern Irish assembly to leave a new Irish backstop after a set number of years". GBP/USD has jumped 70 points on the news and could well support the quid throughout the European morning session.
Key Movers
Risk was sold off yesterday as US-China tensions escalated as the US imposed visa restrictions on certain Chinese officials. Safe havens, including the dollar, pushed higher .
Meanwhile, US Fed Chair Powell announced yesterday that the Fed will buy more short-term treasuries to bolster the balance sheet, but made it clear it wasn't QE. Nevertheless, it makes for a more interesting FOMC meeting this evening, at which point the bank are expected to announce a cut in interest rates of 25 basis points.
Expected Ranges
GBP/USD: 1.2200 - 1.2350 ▲GBP/EUR: 1.1100 - 1.1220 ▲