ICM: British Pound soars on Brexit Deal Hopes

ICM, the leading London-based FX and CFDs provider, reported that the Sterling appreciated against peers yesterday as Michel Barnier said that the European Union is ready to offer the United Kingdom an unprecedented deal. The dollar selling continued for the fourth consecutive day despite strong economic figures which supported U.S. stocks.

The Sterling pound rose to the highest level in four weeks against the United States dollar as the comments of the European Union Chief negotiator shrugged-off the fears of a “no-deal” Brexit. Michel Barnier declared that the European Union is prepared to offer the United Kingdom a partnership that has never been with any country. Market participants considered his comments as a game changer and that the EU wants a deal which might not be harsh to the UK. As per ICM trading platform, the GBPUSD traded above $1.30 level post the comments and reached a high of $1.3043 during the Asian session. The GBPJPY was a top gainer, logged its biggest daily gain since September, and closed at a four-week high of 145.57.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies ended lower for the fourth consecutive day due to the enhanced investor’s risk appetite. DXY settled near a four-week low at 94.53, down 2.5% in two weeks. The economic figures continue to show that the US economy is solid, the CB consumer confidence rose to an eighteen-year high and the second reading of the second quarter GDP came out at 4.2% versus an expectation of 4.0%.

On the other hand, major US indices settled higher with SPX500 and Nasdaq posting a record close for the fourth straight session supported by positive economic indicators and the possibility of a trade deal between Canada and the United States. As per ICM trading platform, the Dow Jones Industrial Average finished at 26124, the highest level since early February. The SPX500 rose 0.6% to 2914, and the tech-heavy Nasdaq Composite gained 1% to 8109.

Gold prices bounced-off a three-day low of $1200 and closed higher at $1207 as the dollar weakened. The gold ounce is trading in a tight range between $1200 and $1214 awaiting new fundamental developments that could drive gold higher or lower. The silver ounce finished the day slightly higher at $14.72.

Oil prices edged higher as the Energy Information Administration reported a drop in inventories. The crude oil inventories fell by 2.566 million barrels last week to a total of 405.79 million barrels. As per ICM trading platform, the West Texas Intermediate crude futures rose to a three-week high of $69.85 per barrel, and the Brent futures traded at a high of $77.51 per barrel.

AXIR Consulting

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