Home > XE Currency Blog > XE Market Analysis: Sterling Surges on Rumors of Soft Brexit

AD

XE Currency Blog

Topics5712 Posts5757
By xemarketanalysis January 12, 2018 3:01 pm
    xemarketanalysis's picture
    xemarketanalysis Posts: 534
    XE Market Analysis: Sterling Surges on Rumors of Soft Brexit

    OVERVIEW

    • The Euro hit a three year high against the US Dollar in early trade on successful German coalition.
    • The Pound hit its highest level against the Dollar since the Brexit Referendum.
    • Canadian central bank interest rate hike probability hits 86%.

    HIGHLIGHT

    The Pound has surged higher today after unconfirmed reports suggested that both the Spanish and Dutch governments were inclined to agree on a soft Brexit. This would suggest cracks in the armor of the 'united front' negotiating for a hard Brexit.

    US DOLLAR

    The US Dollar is weaker today as the focus in currency markets was on the German coalition success and potential for a softer Brexit. The Greenback was at a three year low against the Euro, and worst level against the Pound since June 2016, which is not a good day for the Dollar.

    BRITISH POUND

    The Sterling is stronger across a basket of currencies on hopes for a softer Brexit. The Pound surged to a post Brexit referendum high against the Dollar as unconfirmed reports surfaced that the Spanish and Dutch governments were inclined to agree on a soft Brexit deal.

    EURO

    The Euro is stronger today on the news of a successful coalition government being negotiated by Angela Merkel. The European powerhouse has been in negotiations since the inconclusive election in mid-September, a four-month period of uncertainty. The Euro hit a three year high against the Dollar on the back of it. 

    CANADIAN DOLLAR

    The Loonie is little changed against a weak US Dollar as the price of oil dips. The focus for this currency has now shifted to next week’s interest rate decision from the Bank of Canada. Future markets are currently pricing in an 86% chance of a 0.25% hike in rates. 

    AUSTRALIAN DOLLAR

    The Aussie Dollar is largely unchanged in a day when currency markets were volatile. The commodity currency was sidelined by the majors being in focus. 

    FEATURED CURRENCY

    Paste link in email or IM