Fresh hopes of a deal causes GBP to climb

19th September 2019 Market Update

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?? GBP -  Sterling's positive moves continued late in the afternoon and has continued into the morning on fresh hopes from the EU that a Brexit deal may well be reached.
Jean Claude Juncker commented in the afternoon that the EU may well soften it's stance on the Irish Backstop issue and felt confident some kind of accord could be reached with the UK.
As a result sterling surged higher breaching previous highs and levels of resistance in the market to make fresh 4 month highs. Since the start of the month sterling has gained by 4% across a basket of currencies over optimism of a deal being done and any additional gains will be dependent on any further positive news flows to do with hopes of a deal being reached.
In other news the Bank of England kept interest rates at 0.75% as well as leaving the current QE programme unchanged and the Supreme Court have confirmed they will make their decision on the legality of the suspension of parliament next week.

?? EUR - No major news flows from the Eurozone resulting in a lacklustre performance on euro pairs and no additional data today

?? USD -  Over in the states, the Fed’s latest offer of US$75bn of extra liquidity was oversubscribed with banks making US$84bn of bids in short term funding.
No news flows today.

 

Summary:

GBP: Fresh highs on sterling
EUR: Juncker provides hopes of a Brexit deal
USD: Fed inject more cash


 

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