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By xemarketanalysis December 17, 2018 11:58 am
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    Xe Market Analysis: Pound Struggles as UK Gov Rules Out Second Brexit Referendum

    OVERVIEW

    • The Pound remains weak as the can is kicked down the road once again on "meaningful vote."
    • US Dollar yields ground ahead of FED Interest rate Announcement.
    • The Loonie dips on concerns over global growth.
    • The Croatian Central Bank intervenes to stop the Kuna appreciating.

    HIGHLIGHT

    The Pound remained on the backfoot today as Theresa May addressed the House of Commons and confirmed that negotiations around the "backstop" agreement were ongoing and that a "meaningful vote" would be held in the house of commons in the week commencing the 14th of January, 2019. This announcement leaves a significant amount of uncertainty and therefore leaves the Pound undesirable to investors and traders alike. 

     

    US DOLLAR

    The Dollar gave up ground today as markets look to the upcoming interest rates announcement and President Trump tweeted his unease with further rate hikes. The market is currently pricing in a 75.3% probability of a 0.25% interest rate hike. 

     

    BRITISH POUND

    The Pound continues to trades at 20-month lows levels against the majority of major currencies after the PM ruled out another referendum. This delayed the meaningful vote on the draft Brexit agreement until the second week of January 2019, which is uncomfortably close to the scheduled March 29th Brexit date. 

    EURO

    The Euro is largely unchanged as the focus for the week remains on Brexit and the US Interest Rate decision later in the week. The Italian Debt situation has again made headlines with the Italians suggesting they can achieve 2.04% - still however above the 2.0% rule.

    CANADIAN DOLLAR

    The Loonie dipped against other currencies today as the concerns over global growth were hindered by the drop in stock markets and the price of crude oil.

    AUSTRALIAN DOLLAR

    The Aussie Dollar is on the defensive today as the commodity currency weakened on the back of slower demand from China and the global economy. 

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