Forex Marketz Daily Forex News – Fully Markets Update
The British pound softened from a five month high price point during the Asian trade session against the U.S. dollar. Traders are starting to worry, again, about Brexit negotiations.
The United Kingdom is ready to leave the European Union on October 31 with or without a deal in place.
The British currency also pulled back from a five month high price point against the euro as traders looked to book profits. Forex traders are also waiting on the make it or break it summit between the United Kingdom and the European Union scheduled for Thursday and Friday.
The GBP/USD currency exchange rate dropped 0.2 percent to trade at 1.2758. This is down form the five month high price point, set overnight, at 1.28.
The GBP/EUR Forex market also saw the British pound losing ground. This currency market lost 0.23 percent. This is down from its May 10 high price at 86.25 pence.
The USD/JPY Forex market was steady at 108.80 yen. This is near a two month low price point.
Forex Traders Focus on Brexit and Book Profits sending the British Pound Lower
Negotiations went well into the night on Tuesday. Traders are hoping that the United Kingdom and the European Union can reach a deal before the summit at the end of the week.
Reports that a deal was within reach boosted the Sterling overnight but volatility remained high as traders are still worried if Britain can reach a deal or even avoid postponing the scheduled October 31 Article 50 exit.
The GBP soared after news surfaced that the United Kingdom was willing to make significant border concessions with the Irish backstop. However, diplomats from the European Union were quick to dispel an imminent deal was within reach.
Without a Brexit deal in place, the United Kingdom will crash out of the Eurozone with no trade or customs deal in place. This will cause significant regional turmoil. Especially with local economies.
