Weekly Market Report
The pound rose for a fourth day versus the dollar before Prime Minister Theresa May gives more details on her plan to preserve the rights of European Union citizens living in the U.K. after Brexit.
Sterling advanced against all except one of its Group-of-10 peers before publication of the 15-page policy document, that could go further than her first pitch on the topic last week, which was criticized for costing people rights. A comprehensive and generous package could pave the way for more open negotiations and a better chance of getting a good deal with the world’s largest trade bloc.
May is set for another challenging week of discussions, which could weigh on GBP. In addition to awaiting how her newest EU-citizen draft goes down with continental leaders, she is hoping to form an agreement with the DUP in the next couple of days, while on Thursday she faces a crucial vote on whether legislative agenda for the next two years will be passed.
- GBP/USD rises as much 0.3% to 1.2760, highest level since June 19
- Resistance at 1.2758-62, June 20 high, 76.4% Fibonacci; 1.2815-18, June 19, 14 highs
- EUR/GBP falls 0.1% to 0.8791
Important Data Releases
08:00 – 27/06
EUR- ECB -President Draghi’s Speech
10:00-GBP-BOE’s Governor Carney speech
12:30 – USD –Gross Domestic Product Annualized
Another turbulent week ahead in the currency markets. Which makes it imperative for clients who are looking to move currency in the near future to plan accordingly.