Sterling shoots higher on Brexit Deal Hopes

GBP

The British pound climbed to a six-week high against the United States dollar as Michel Barnier signaled a possible deal. He said that they could reach a deal in the coming six to eight weeks if the demands were realistic. The GBPUSD traded at a high of $1.3063, and the EURGBP fell to a five-week low of 0.8890. Market participants are waiting for the British job report today where a strong reading of the average earnings index could provide additional support to pound pairs.

USD

The dollar index which measures the greenback against a basket of major currencies retreated from a three-day high of 95.56 as the optimism from a possible Brexit deal boosted the European currencies. The euro spiked against the falling dollar to trade at a high of $1.1623. On the other hand, the trade talks between Canada and the United States will continue today where a trade deal could add the pain to the dollar as it improves investor’s risk appetite.

Metals

Metals prices ended flat yesterday despite the depreciation of the U.S. dollar. The gold bullion settled at $1195 and the silver ounce closed at $14.16. The strong August jobs report from the United States confirmed the monetary policy stance of the Federal Reserve and pressured the safe-haven asset.

Oil

Oil prices were mixed yesterday post the meeting between the U.S. energy secretary and Saudi Energy Minister. Oil futures were trading at the highs but pared gains to the close. The West Texas Intermediate crude futures settled slightly lower at $67.50 whereas the Brent futures closed slightly higher at $77.33. The U.S. energy secretary said that the Trump administration supports higher output by oil producers ahead of the renewed U.S. sanctions on Iran. On the other hand, the American Petroleum Institute will report the U.S. weekly crude oil stock later today. 

Major Economic Events

 
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