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Sterling receives overnight boost

20 Sep 2019

The British pound received an overnight boost following the OECD’s statement that a no-deal Brexit would cause the UK economic growth to fall by 3%. The GBP/USD got closer to the 1.26 handle – marking the highest point the Cable has reached since mid-July with the sterling is now being traded at $1.2576 against the U.S. dollar. 

EU Commission President Jean-Claude Juncker’s comments gave hope for a deal-Brexit, as he told Sky News ‘we can have a deal’ on Brexit. Juncker insisted that he will try to secure a deal before the deadline. Britain’s Brexit minister Steve Barclay will be meeting the EU chief negotiator Michel Barmier on Friday. The Cable now sits over the 1.2500 mark.     

Furthermore, the EUR/USD opened the market at 1.1045, and was last traded at 1.1059. Traders will be waiting the Eurozone’s preliminary Consumer Confidence index for September, which is estimated to result at -7. The pair is increasing to 1.1056, up by 0.14%, and remained stable despite the Fed’s rate cut. 

Investors are keeping in mind the latest FOMC event and have started to shift their attention on the dispute between the U.S. and China. Friday will be the second day of a two-day meeting between U.S. and Chinese officials that is set to lay the basis for further trade talks between the two giant nations in October.