Pound Moves Higher on Change in Brexit Talks Tone

. 2 min read

The pound has recovered across a basket of currencies as reports of a shift in tone in the talks between the Labour party and UK government surface. An unnamed senior Labour party member reported that the tone of talks had changed significantly and progress is being made. The pound moved higher against the dollar to a two week high.

The Prime Minister is still under significant pressure as reports suggest the Tory party will look to oust the PM over the summer and force a leadership vote within the party. This would ultimately result in another extension to Article 50, as a new leader works out their own Brexit strategy.

Euro

The euro is stronger today after some positive economic data from Germany and therefore solid composite numbers for the EU. The German unemployment rate remains at 4.9% and this translated into an EU unemployment rate of 7.7% - this is below the previous reading of 7.8%. The EU GDP growth number was reported above the expected number and above the previous reading, showing the EU economy had grown 1.2% in the first quarter of 2019. The euro moved circa 0.5% higher against the US dollar through the day.

US Dollar

The US dollar has lost ground against both the pound and euro as the market eyes the FOMC meeting. The dollar weakened after US President Donald Trump urged the FOMC to lower interest rates in order to “rocket” the US economy to new heights. The market however is currently only pricing in a 1.9% probability of rates being cut.

Please contact us for more info about your international payments, or click here to register and save now.

Please Note:
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.


For more information about XE, please click here: Regulatory Information