ICM: Pound Rallies on Brexit Deal Hopes, Dollar Slips along with Treasury Yields

ICM, the leading London-based FX and CFDs provider, reported that the British pound strengthened against peers on talks that the United Kingdom and the European Union are making progress and are close to reaching a deal.

The Sterling Pound advanced to a two-week high against the United States dollar following a report from Dow Jones Newswires stating that the European Union and the United Kingdom could reach a Brexit agreement as soon as Monday. As per ICM trading platform, the GBPUSD traded at a high of $1.3173 during the Asian session. Moreover, the EURGBP ended lower for the sixth consecutive day at 0.8744, the lowest close since mid-June. The Italian budget woes are pressuring the Euro whereas the pound is finding support from the optimism of reaching a Brexit deal. On the other hand, several economic indicators are due today, such as the Manufacturing and Industrial production.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies retreated from a seven-week high of 96.16 to settle lower at 95.68. Mainly, the dollar was under pressure due to the drop in U.S. Treasury yields and the optimism from Europe. The U.S. 10-year Treasury yields tumbled from a seven-year high of 3.25% to finish lower at 3.21%. Market participants await the release of the September Producer Price Index to grasp hints about inflation. On the other hand, the U.S. Treasury secretary Steven Mnuchin warned China not to use currency devaluation as a tool to fight back in the trade war occurring between China and the United States. The USDCNY rose to a seven-week high of 6.9213 on Monday as the People Bank of China lowered the reserve rate requirement for Chinese banks.

Gold prices ended the day almost flat as the dollar and Treasury yields tumbled. As per ICM trading platform, the gold bullion traded at a low of $1,183 as the dollar index reached a high of 96.16, but the prices bounced back to settle at $1,190 as the dollar reversed gains. On the other hand, the silver ounce ended at $14.36.

Oil prices ended a three-day losing streak, supported by the Hurricane Michael. The oil companies operating in the Gulf of Mexico were forced to shut down 40% of their production. As per ICM trading platform, the West Texas Intermediate crude futures finished the day at $74.64, and the Brent futures settled at $84.85. The U.S. inventories were delayed one day this week due the public holiday that took place on Monday. The American Petroleum Institute will report the U.S. weekly crude oil stock later today, and the Energy Information Administration will report the official data tomorrow.

Gelogis

No Comments Yet

Leave a Reply

FOLLOW US ON