Have a look at our new FX Talk trailer. This podcast gives listeners a global perspective on the foreign exchange market.
-
CA - EN
- Australia - English
- België - Nederlands
- Belgique - Français
- Canada - English
- Česká Republika - Čeština
- Deutschland - Deutsch
- España - Español
- France - Français
- Ελλάδα - Ελληνικά
- Hong Kong - English
- Italia - Italiano
- Luxembourg - English
- Nederland - Nederlands
- Polska - Polski
- Portugal - Português
- România - Română
- Schweiz - Deutsch
- Suisse - Français
- United Arab Emirates - English
- United Kingdom - English
- Hong Kong-Traditional Chinese
Ebury London
100 Victoria Street
London
SW1E 5JL
+44 (0) 20 3872 6670
[email protected]
Ebury.com
Sterling bounces back on hopes for a Brexit deal
- Back to all posts
- Latest
4 December 2017
Chief Risk Officer at Ebury. Committed to mitigating FX risk through tailored strategies, detailed market insight, and FXFC forecasting for Bloomberg.
The Pound was buoyed by strong UK data and word that Prime Minister May was ready to increase her offer for the amount to be paid to settle UK obligations to the EU as part of the Brexit process. Sterling rose against every other major world currency as a result.
This week should be relatively calm while markets wait for the ECB and Federal Reserve meetings later in the month. However, the Reserve Bank of Australia meeting on Tuesday and the US payrolls report for November out on Friday should make for some volatile trading in the respective currencies.
Major currencies in detail
GBP
Reports that European negotiators are ready to allow Brexit talks to proceed to the next stage at the December European Council meeting added to positive Pound sentiment. The main uncertainty is now whether an agreement can be reached on the status of the Irish border after Brexit.
Markets now look to PMI business activity data in the services sector out on Tuesday. We think risks are skewed to an upside surprise, which could provide further fuel for the recent Sterling rally.
EUR
We now go into a data-light week in the Eurozone, when the main reference will be German industrial production out on Thursday. Aside from that, markets will remain focused on headlines regarding progress in German talks to form another Grand Coalition and avoid new elections. We expect the Euro to continue trading in a holding pattern this week while we wait for the key ECB meeting on 14th.
USD
A very quiet week with little data or fresh information out of the US ended Friday with news that Senate Republicans had managed to pass a tax package focused on dramatically lowering the corporate tax rate. The House had already passed its own version, and the bill now moves to reconciliation, where a new package agreeable to Republicans in both the House and the Senate should be agreed on. We do not expect this to be a problem for the Republican leadership.
The Dollar reacted positively in early Monday Asian trading. This additional fiscal stimulus will hit a US economy that is already hovering near full employment, and Federal Reserve officials like Bill Dudley have already warned that, at the margin, the tax cut implies the need for higher rates. This should be a positive for the Dollar into 2018.
Privacy Overview
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_ga_990TKFH9FD | 2 years | This cookie is installed by Google Analytics. |
_gat_gtag_UA_51187572_44 | 1 minute | This cookie is set by Google and is used to distinguish users. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
CONSENT | 16 years 4 months | These cookies are set via embedded youtube-videos. They register anonymous statistical data on for example how many times the video is displayed and what settings are used for playback.No sensitive data is collected unless you log in to your google account, in that case your choices are linked with your account, for example if you click “like” on a video. |
pardot | past | The cookie is set when the visitor is logged in as a Pardot user. |
Cookie | Duration | Description |
---|---|---|
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
yt-remote-connected-devices | never | These cookies are set via embedded youtube-videos. |
yt-remote-device-id | never | These cookies are set via embedded youtube-videos. |
Cookie | Duration | Description |
---|---|---|
_lfa | 2 years | This cookie is set by the provider Leadfeeder. This cookie is used for identifying the IP address of devices visiting the website. The cookie collects information such as IP addresses, time spent on website and page requests for the visits.This collected information is used for retargeting of multiple users routing from the same IP address. |