Daily Currency Update

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Pound volatile as deal becomes a possibility

GBP - British Pound

GBP/USD pushed up through the 1.27 big figure, and came close to breaking 1.28, on Tuesday evening as a deal seemed to be in the offing. The DUP seems to be wavering, however, and seem unwilling to support any NI border agreement that is negotiable. More and more, reports are coming in this morning to suggest as much. It's put downward pressure on the pound and it's snapped 80-90 points lower on European opening.

In the meantime, negotiations between UK and EU officials have kicked off again this morning, so expect heightened volatility throughout the day today as we get closer to an answer on any Brexit deal.

Key Movers

It's all about Brexit at the moment, but in other news the RBNZ appeared dovish overnight with Deputy Governor Bascand saying that it would be reasonable to expect another interest rate cut at the next monetary policy meeting. NZD was offered throughout the night as a result.

Meanwhile, US-China negotiations took a bit of a turn for the worse as China said it opposed the US's support for the HK protesters. Risk appetite is mixed.

Expected Ranges

GBP/USD: 1.2200 - 1.3200 ▼

GBP/EUR: 1.1200 - 1.1820 ▼

GBP/AUD: 1.8500 - 1.9300 ▼

GBP/NZD: 1.9800 - 2.1000 ▼