Both sides, EU and UK have said they hope to agree on a deal before the EU summit on Thursday and Friday, and if that happens, the government says it will introduce a withdrawal agreement bill to be voted on next Saturday in a special Parliamentary session. – BBC
We might expect more volatility on the GBPUSD currency pair the closer we get to Thursday and Friday EU Summit in Brussels. Wednesday morning saw the cable rate move lower from 5-month highs as uncertainty over an orderly Brexit continues.
Source – Bloomberg
The broader market is feeling the pinch as Brexit drags on, and Eurozone economic uncertainty persists, which saw European stocks open lower on Wednesday.
The German economic outlook remains weak as the Eurozone’s largest economy might have moved into a recession. The latest economic sentiment data released yesterday, the Germany ZEW Economic Sentiment data showed a decline in the economic outlook for the next six months.
While the Euro remains under pressure, we might expect the German Dax to push higher while the Eurozone uncertainty remains.
Disclaimer:
Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.