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By xemarketanalysis June 19, 2017 10:59 am
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    XE Market Analysis: Sterling Future is Uncertain as Brexit Negotiations Begin


    • The Sterling remains stable on the day that the formal Brexit negotiations begin.
    • The Federal Reserve's Dudley has painted a positive picture of the U.S. economy.
    • Euro is steady after Macron achieves a parliamentary majority.
    • South African Rand plummets as political instability strikes again.


    The Pound has been watched very closely as political instability and uncertain negotiations to leave the European Union have begun. Discussions with the DUP and the ruling Conservative government are ongoing as Theresa May tries to form an alliance. She will need to get any major policies through parliament before moving forward. 


    The US Dollar has taken full advantage of the positive comments made today by FED member Dudley, stating that the U.S. economy will continue to grow for years while dismissing low inflation and wages. 


    The Pound has been stable today as the formal negotiations to leave the European Union started in earnest. The currency has held on to its gains last week after the Bank of England's MPC surprised the markets when 3 members voted to raise interest rates. 


    The Euro is firm today as construction output from the Union was reported stronger than the previous month. This, as well as a convincing win for Emmanuel Macron in the parliamentary elections over the weekend, has helped the single currency. 


    The Loonie is stable in a quiet start to the week from a data point of view. The Canadian currency has been volatile in the past weeks as the price of crude oil has been extremely volatile. The focus for this currency will be the release of April’s retail sales data.


    The Australian Dollar has fought hard to regain some of its recent losses. The commodity based currency is at its highest level for months against the USD as iron ore prices have stabilized after the recent decline. 


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