What is the future of the GBP?

Weekly Report - 02/09/2019

Brexit and Pound Sterling


Investors are wary and watching for any additional progress regarding the Brexit matter. The GBP will presumably continue to overlook the economic data announcements and concentrate mainly on political developments. Now, the majority of MPs are unwilling to agree for the UK to leave the EU without a settlement. So far they have disappointed the general public by not being able to agree on a solid settlement plan. Consequently, people have fair doubts that legislators will be able to unite particularly when the time that they have is short.

The Week that was

Last Friday Oil eased after three consecutive sessions of constant profits. Oil had its strongest week since the beginning of July. The reasoning was the boost from the decline in US inventories and from a hurricane that was near Florida.

Brent crude fell 7 cents, at $61.00, following an increase of 1% recently. US oil dropped 11 cents, to $56.59 a barrel. Now last Friday the safe haven Gold fell while China and the United States showed the goodwill to resume trade talks. The resumption was aiming to resolve the ongoing trade conflict. That fact pressed the metal for short weekly drops notwithstanding a great August. Spot gold fell 0.2% to $1,525.05 per ounce while the US gold futures also declined 0.2% at $1,534.49 an ounce.


Main Focus This Week

It will be a busy week regarding the Eurozone economic agenda. The PMIs for August Private Sector are due for Italy, Spain, France, Germany, and the Eurozone today. If we witness weaker economic numbers from Italy, with additional political uncertainty we may see the majors becoming volatile at the start of the week. Another fact that we should pay attention is that the US markets are closed for the day.


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