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Currency Market Analysis

Oct 16, 2019 | Currency Market Analysis

Global Themes

GBP jumps as UK inches to Brexit deal

The British pound jumped overnight hopes grew for a potential Brexit deal ahead of the UK’s 31 October deadline.

UK news reports suggested the Johnson government had agreed to border checks in the Irish Sea in a move that might see the UK and EU agree on a revised deal.

The new draft agreement could be published as soon as tonight.

Any agreement needs still needs to be approved by the UK parliament.

Shares gain

Across markets, safe haven currencies mostly fell as sharemarkets climbed.

The US dollar and Japanese yen both fell.

The NZD was higher after New Zealand inflation was reported stronger than expected.

Key data

FX markets will be braced for key global data over the next day.

From the UK and Europe, inflation data, along with the Brexit negotiations, are likely to drive sentiment.

In the US, retail sales are due tonight.

In Australia, tomorrow’s employment numbers can drive AUD sentiment.

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