Weaker US dollar drives pound up
LONDON (UK) – The weaker US dollar continued to drive the pound up on Thursday. But as investors weighed the chances of the UK inking a trade agreement with the European Union by the end of this year, the pound stayed neutral versus the euro.
For the pound, this month is significant as by July end it would be clear whether or not a deal will be struck.
“The second to last week and the last week of July are going to be the extreme Brexit crunch point,” said Stephen Gallo, European head of FX strategy at BMO.
“If there’s not movement by the week of 20th or the week of 27th, that may be the second wave of selling in sterling,” Gallo said.
During the day, the pound traded at $1.2518 up 0.3% showing an eight-day high.
Over the last two days, it has shown signs of improvement. But in June, it kept falling, losing 2.7%.
The pound stood steady at 90.19 pence against the euro.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field