Brexit

The Euro softened in sympathy with Pound Sterling Wednesday after the fortnight long rally by the British currency came to an end in tandem with voting in the UK parliament, athough Europe's unified unit is said by some to be at risk of further losses heading toward the weekend. 

The Pound has reclaimed its earlier position as the second best performing major currency of 2019 and could now be becoming, for some at least, a 'buy on dips' prospect rather than the 'sell on rallies' story it's been through much of the year but others are urging a cautious approach toward the British currency.

The Pound rallied into the weekend Friday as markets celebrated an ebbing of 'no deal' Brexit risk and Prime Minister Boris Johnson returned from Brussels proclaiming a new deal, but the British currency has more upside left to run against the Dollar than Euro, according to Nordic lender Skandinaviska Enskilda Banken (SEB). 

The UK is on course for a Saturday showdown over Brexit in the House of Commons after Boris Johnson emerged from negotiations in Brussels claiming to have reached a new deal with the EU, as the Prime Minister appears to be short of the support needed to get agreement through parliament. 

The British Pound is in focus ahead of the weekend with the two Brexit negotiation principles Dominic Raab and Michel Barnier due to meet in Brussels to take stock of the Brexit negotiations.

Pound Sterling erased earlier losses and advanced against the developed world currency basket Tuesday after the latest labour market report showed the UK economy continuing to create new jobs at a rapid clip in April, keeping the unemployment rate at a multi-decade low. 

Pound Sterling may be tested on Tuesday as MPS gather in the House of Commons to vote on a series of “Brexit wrecking” amendments inserted into the EU Withdrawal Bill by the House of Lords, which will set the government's Brexit strategy in legislative stone.   

The European Parliament is said to be preparing a "detailed," 60-paragraph resolution which will call for more flexibility in future relationship talks with Britain that would allow for privileged single-market access.

A transition deal means a slower journey to a bad destination so if an agreement is struck in the new year, it will be unlikely to boost the economy’s performance.

"Sufficient Progress" has been declared but the rub for Sterling is that Brussels has thrown down another gauntlet for PM May with its Phase 2 guidelines.

Retail sales, "sufficient progress", the Bank of England and traders’ reactions to the “amendment 7” defeat of the government in parliament were the main events Thursday.

A "No Deal" Brexit is looking increasingly likely but with the Pound having already fallen sharply during October, and a possible rate hike from the Bank of England just weeks away, some strategists say much of the bad news is already priced into markets.

77% surge in Britons looking for work in the US following the referendum result, according to world’s largest job site, Indeed.

The British pound continues to get weaker and the FTSE 250 is now 10% below its pre-referendum levels. This is the market’s verdict on an unforgivable lack of planning for the Brexit scenario by the UK government.

The GBP will take a cue from the Bank of England’s Governor Mark Carney who is set to outline his thinking on how Britain's economy is coping with last week's vote to leave the European Union in a speech on Thursday.

GBP/USD outlook: Where to place your stop loss orders if deciding to go long, the levels of support to consider and angles to approach Cable from over what is expected to be a wild couple of days.  

Analysts at Citibank, the world’s largest foreign exchange dealer, have updated markets on their latest views concerning the British pound’s outlook.

The most interesting analysis of a post-Brexit foreign exchange market has been given by NAB’s Nick Parsons who says the big loser of a Brexit will be the euro and we could see GBP/EUR rocket back towards its 2015 best.

There is a good chance sterling will continue falling over coming days but, the further it falls, the greater the recovery that is forecast on the assumption Remain will win the vote.