- Home
- Blog
- Currency News
- Scrutiny of Brexit Withdrawal Bill Resumes
Scrutiny of Brexit Withdrawal Bill Resumes
٨ يناير ٢٠٢٠ — 3 min read
It seems the USD will be the net benefactor of moves yesterday and overnight.
The US produced a data set (being the ISM Non-manufacturing print – this is the Institute for Supply Management survey of 400 companies in utilities, mining, finance and banking, business services and construction for example and their orders). Expected at 54.5 the result was a big surprise to the upside arriving at 55. Any figure over 50 is a growth figure and so this means a much faster growth than anticipated. This could be an early sign of positivity from the sector from the agreement of Phase One trade negotiations between the States and China. The USD pushed rapidly against the beleaguered EUR but it appears likely to experience retardation around the resistance level – which is also the 55 day average so doubly significant – around the 1.1065 mark.
GBP could face a test in watching for any details from the meeting of Boris Johnson and, European Commission President today. Any details about how the trade negotiations go will likely provide increased volatility for the Pound as investors will be eagerly watching for indications of friction or otherwise. The context is important, too. Preliminary discussions with Australia (not a full trade discussion) regarding travel and immigration ended without real cohesion. Boris Johnson has had an (in)famous stance on rigidity for the end of the transition period afforded to Brexit at the end of the year and even amended legislation in order to stop any runover; a stance that drew critics and resulted partly in the sell-off of the GBP post-election.
The rates during the new year have seen some significant shifts in volatility.
Rates at time of writing below:
GBPUSD – 1.3142
GBPEUR – 1.1811
EURUSD – 1.1132
The figures are based on the live mid-market rate, correct as of 08:30 GMT on 08/01/2020, and are provided for indicative purposes only. Live mid-market rates are not available to consumers and are for informational purposes only. The rates we quote for money transfer can be selected via the page on our website ‘Live Money Transfer rates’.
If you’d like to talk to our Business Solutions team about your business requirements, get in touch here.
Please Note:
The information, materials, accompanying literature and documentation available on our internet site is for information purposes only and is not intended as a solicitation for funds or a recommendation to trade. XE, its officers, employees and representatives accept no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.
Click here more information about XE