The pound sterling rose higher against the greenback after a string of weak days as the Prime Minister meets with the head of the European Commission in a list-ditch effort to sign a Brexit agreement. The current deadlock is the result of a failure to compromise on a few key issues, and analysts hope that the in-person meeting between Boris Johnson and Ursula von der Leyen will be sufficiently fruitful to break the impasse. Despite the lift for sterling, currency strategists confirm that markets remain highly uncertain that a deal can be signed before the transition period ends later this month.
In London trading, as of 11:07 am, the GBP/USD was still trading higher at $1.3454, a gain of 0.727% and sliding away from the session peak of $1.34617; the low was recorded at $1.33475. The EUR/GBP was trading a 0.9010 pence, a loss of 0.5575%; the pair has ranged from a trough of 0.90051 pence to a high of 0.90815 pence.
Markets Look Ahead to Central Bank Decisions
With the exception of a monetary policy decision from the Bank of Canada, there is little in the way of market-moving events until tomorrow, when the European Central Bank will announce its rate decision, and later when the US Department of Labor will release its personal inflation data. The Bank of Canada is expected to leave rates at their current low levels, though markets will focus on the accompanying statement to gauge how the central bank intends to deal with economic fallout from the coronavirus. The USD/CAD is currently trading at C$1.2782, down 0.29%. Similarly, the ECB is likely to leave rates unchanged at its meeting tomorrow; the ECB President will conduct a press conference following the news release. The EUR/USD is trading higher at $1.2127, a gain of 0.1908%.