May 29, 2020

Sterling down; May is sticking to her Brexit plans.

LQDFX Forex News Blog: Sterling down; May is sticking to her Brexit plans.

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The Sterling dropped further to a three-week low on Wednesday as Prime Minister Theresa May defended once more her Brexit plans. Despite few new “findings” in her speech which may lead towards the one or the other direction, the response of the market was direct but not so strong.

Britain’s Prime Minister said that she prefers a no-deal Brexit rather than a bad one. Her speech in front of the participants of her Conservative party conference was indicative of her intentions towards the new round of EU-UK negotiations. A lack of a transition agreement just worsens the situation.

The British pound has been hit hard by the growing conflict within Conservatives over Brexit. Forex analysts did not find anything surprising in her rhetoric that could also excite currency traders. All eyes are now on to the next phase of talks with Brussels.

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Forex Market – Sterling down, Dollar up

The Dollar climbed 0.05% against its major traded rivals, benefited by Euro’s drop and Fed’s comments that boosted trader’s sentiment.

The Euro remained unchanged after failing to a 1 ½ month low in the previous session following “Italexit” comments.

Safe heavens like the Swiss Franc and the Yen struggled against the euro, the greenback and the Australian dollar.

The Australian Dollar slid 0.5% to a 2-week low, as markets were shaken following Euro zone concerns.

The Sterling slid 0.4% to aa 3-week low amid ongoing Brexit conflicts over May’s Brexit plans. The pound traded flat against the single currency.

Oil prices remained close to a 4-year high following Saudi Arabia’s statements that it increased the output. In other news, Russia and Saudi Arabia agreed on increasing output further. Brent crude futures increased by 20 cents a barrel, above 85$ per barrel. U.S. crude futures gained 15 cents from their last close.

Sources: Reuters, CNN money, BBC

PLEASE NOTE The information above is not investment advice.