Author Topic: Hopes for Brexit deal lift euro, sterling  (Read 304 times)

Offline thaiga

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Hopes for Brexit deal lift euro, sterling
« on: September 11, 2018, 02:41:25 PM »
Hopes for Brexit deal lift euro, sterling

The euro and sterling rose against the dollar on Monday after the European Union's top negotiator said an agreement for Britain to leave the economicbloc might be reached in the coming weeks.

The pound in particular had been under pressure in recentweeks on anxiety that Britain would exit from the EU without anyformal trading arrangement.

"Sterling bears have been caught off side. The euro is alsogetting a bump as people are jumping on a 'risk-on' sentiment,"said Dean Popplewell, vice president of market analysis at OANDAin Toronto.

EU chief negotiator Michel Barnier told a forum in Sloveniaa Brexit deal was "realistic in six to eight weeks."*:nL5N1VW39I

Sterling GBP=D3 was up as much as 1 percent versus thedollar. It was last up 0.9 percent at $1.3033, Reuters datashowed.

The euro EUR=EBS rose nearly 0.4 percent at $1.15965,while it touched a near one-month low against the pound, lastdown over 0.5 percent EURGBP=D4 at 88.98 pence.

Policy-makers at the Bank of England and European CentralBank are widely expected to leave their policy unchanged attheir respective meetings on Thursday.

"It seems unreasonable to expect (Mario) Draghi to signal acourse change" at the ECB, said Win Thin, global head ofemerging market currency strategy at Brown Brothers Harriman inNew York. "It is an easy call: unanimous decision to hold afterhiking rates last month," Thin added. The more positive view on Brexit reduced safe-haven holdingsof the dollar, whose decline was limited by an upbeat U.S. jobsreport released on Friday and lingering worries about emergingmarket currencies, analysts said.

An index that tracks the dollar against the euro, sterling,yen and three other currencies .DXY was down 0.24 percent at95.140.

Speculators' net long bets on the U.S. dollar fell to afive-week low, worth $20.60 billion in the week ended Sept. 4,according to calculations by Reuters and Commodity FuturesTrading Commission data released on Friday.

An index for emerging market currencies .MIEM00000CUS fell0.5 percent to near one-week lows. The Indian rupee INR= fellto a record low at 72.675 per dollar, while the Hong Kong dollar HKD=D3 hit the lower end of a trading band at 7.85 per U.S.dollar.

Meanwhile, the Swedish crown SEK=D3 , which has been theworst performing currency among the majors, edged up 0.1 percentat 9.059 crown per dollar. Gains for the far right in Sunday'selection were smaller than some polls had predicted - eventhough the country faces weeks of uncertainty as it tries toform a government.*:nL5N1VW18Y
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