europe union building

DUP Cannot Back Current Deal

17th October 2019 Market Update

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🇬🇧 GBP –  UK and EU negotiators seem ever so closer to striking a deal ahead of a key EU summit over the next two days. Despite contradictory and conflicting comments made by various officials involved to muddy the waters, causing the pound to whipsaw, the overall view is that there is a serious attempt for all parties to strike a deal which eventually saw the pound to make new multi month highs.

However, the pound has already dropped this morning after the DUP issued a statement saying that they cannot support the deal as it stands with the VAT in Northern Ireland remaining the outstanding issue.

So another tumultuous day expected today as Boris heads to Brussels to continue negotiations in an attempt to get a deal over the line. Amongst the Brexit chatter, UK retail sales data will be in focus this morning with analysts expecting a pickup 3.2% for the month of September.

🇪🇺 EUR – No major news flows yesterday from the eurozone but today will see several members of the ECB speaking, looking to back Mario Draghi’s calls for local central banks to introduce their own monetary stimulus on top of what the ECB have down themselves.

🇺🇸 USD –  The US dollar continued its losing run yesterday as another Fed member cited that another Fed rate cut will be needed this year.

Today the only focus is the weekly initial jobless claims.

 

Summary:

GBP: Sterling drops after the DUP state that they cannot support the current deal
EUR: ECB Calls on local central banks to introduce monetary stimulus measures
USD: Further calls for rate cut.


 

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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