12th October 2017-Sterling resilient despite Brexit fears with some expectations of a November rate hike

 

     

Sterling resilient despite Brexit fears with some expectations of a November rate hike

There were no major surprises in the Federal Reserve minutes from September with many members expecting a further rate hike this year, although a detailed discussion on inflation prospects led to a slightly dovish market interpretation.

The dollar index declined to 2-week lows with no fresh momentum on tax reform also hampering sentiment as EUR/USD advanced to the 1.1880 area. Precious metals took advantage of a weaker US tone.

Sterling was resilient despite Brexit fears with some expectations of a November Bank of England tightening providing support with GBP/USD at 1-week highs.

Underlying pressure to make progress on the Brexit talks was again illustrated by comments on the financial sector with Treasury remarks that international banks would decide in the first quarter of 2018 whether to move operations away from the UK.

There were, therefore, concerns over Sterling vulnerability if there is further evidence that there will be no agreement to expand Brexit talks at next week’s important Summit.

Sterling moves were influenced to a large extent by wider dollar and Euro moves amid domestic uncertainty, although speculation over a November Bank of England rate hike provided net support.

GBP/USD moved to highs above 1.3250 as the US currency drifted lower while GBP/EUR held near 1.1120.

     
 
       
 

GBP/EUR 

– 1.1164

 
 

GBP/USD

– 1.3235

 
 

GBP/CHF 

– 1.2878

 
 

GBP/JPY 

– 148.73

 
 

GBP/AUD 

– 1.6924

 
 

GBP/NZD 

– 1.8620

 
 

GBP/CAD 

– 1.6473

 
 

GBP/ZAR 

– 17.8524

 
 

GBP/NOK 

– 10.4742

 
 

GBP/SEK 

– 10.6351

 
 

EUR/USD 

– 1.1861

 
       
  All rates are indicative of interbank rates*  
       
 
 

GBP/EUR

 
 

GBP/USD 

 
 

EUR/USD 

 
       
 
   

11:00 EUR

Euro-Zone Industrial Production (Y/Y)

3.40%

3.20%

 
   

15:30 USD

US FOMC Member Powell Speech

-

-

 
   

15:30 EUR

ECB Praet Speech

-

-

 
   

15:30 EUR

ECB President Mario Draghi's Speech

-

-

 
 
   
 
 
*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time.  CentralFX are not responsible for the rates shown.
 
 
 

Sign up to our newsletter

  1. Please tell us your name(*)
    Please use only alpha-numeric characters
    Please use only alpha-numeric characters
  2. Your Email(*)
    Please let us know your email address.
  3. Business / Personal(*)
    Invalid Input
  4. Please tell us a telephone number you can be contacted on(*)
    Please use only numbers and hyphens

Get in touch

CentralFX

3 Lloyds Avenue
London, EC3N 3DS

+44 (0) 20 7265 7979

info@centralfx.co.uk

We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.We trade currency here. You can trade currencies too. Why not try our currency calculator and use our currency chart and currency economic calculator. Currency is everything here.

.We trade well business here. You can trade business too. Why not try our with business and use our business chart and business economic. business is business here.

We use well business use here. You can trade with great use. Why not use our with use and use our business chart and use economic. business us business use.We use well business use here. You can trade with great use. Why not use our with use and use our business chart and use economic. business us business use.We use well business use here..

Why not trade with our trade and use our trade chart and trade economic.You can trade as we trade too. Why not trade with our trade and use our trade chart and trade economic. trade is trade here.We trade well trade here. You can trade as we trade too. Why not trade with our trade and use our trade chart and trade economic. trade is trade here

.We centralfx well centralfx here. You can centralfx as we centralfx too. Why not trade with centralfx our centralfx and use our centralfx chart and centralfx economic. centralfx is centralfx here.We centralfx well centralfx here. You can centralfx as we centralfx too.