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London RationalFX

RationalFX : Post-Brexit Trade Deal Fears Increase

RationalFX : Sterling extended its losses on Thursday as concerns grow that a potential post-Brexit trade deal between the EU and UK is far from concluded…….

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GBP

Investors are nervous that British Prime Minister Johnson is taking a hard line in the trade talks with the EU, which need to be concluded before the end of the year to avoid a potentially disruptive break in trading relations.

The pound is 2% lower against the dollar this week after Prime Minister Boris Johnson said Britain does not accept the EU’s rules to strike a comprehensive free trade deal with the bloc on Monday.

Sterling has also been affected by the dollar strengthening this week due to strong US jobs data which saw the pound losses extend to Thursday. Sterling fell to 1.2933 against the US dollar, the weakest it has been since 24th December and dropped 0.5% on Thursday with the pound falling 0.3% against the Euro.

Key Announcements

13:30 – USD – Average Hourly Earnings m/m – Forecast at 0.3% from previous 0.1%

13:30 – USD – Non-Farm Employment Change – Forecast at 165k from previous 145k

13:30 – USD – Unemployment Rate – Unchanged at 3.5%

Source : ETFWorld.co.uk

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