Brexit-kick plummets pound to 28-month low, Dollar nears two-month peak

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Brexit-kick plummets pound to 28-month low, Dollar nears two-month peak

On Monday, the 29th of July 2019, ahead of Federal Reserve’s first interest rate cut since the era of great financial depression, awaiting less than 24 hours away, American Dollar Index (DXY) measured against a basket of six major currencies on an average had been reigning near its two-month-peak, while intensifying risks of Britain’s departure from European Union without a deal had knocked an already-softer British currency off to a 28-month-low.

On Monday’s (July 29th) market wrap up, US Dollar Index (DXY) rounded off the day 0.15 percent higher to 98.07, remarking its third straight session of gains, while it had posted a weekly gain of 0.16 percent so far after adding 0.86 percent last week and another 0.36 weekly percent gain prior to that, well poised to post its third straight weeks of gains despite a raft of media murmuring on a Fed rate-cut over the recent weeks.

Adding that the American dollar is well-supported, while a closing in Brexit doomsday may cement a calamitous path for pound to dip down to its record-low figure amid no-deal Brexit risk, a head of foreign exchange strategy for North America at BNP Paribas, Daniel Katzive said, “It is quiet as the market is waiting for the Fed.

The dollar is generally well-supported. It seems like the market is expecting the Fed to struggle to be very dovish relative to expectations. ” Meanwhile, as EU Commission had rejected possibilities of any kind of Brexit renegotiation and Britain’s new leader Boris Johnson appears to be blindfolded over the outcomes of a no-deal Brexit, Monday’s (July 29th) market had reacted strongly to recent Brexit resentments, while pound shed 1.31 percent on Monday (July 29th) market wrap up to curtain off the day at $1.2218, remarking the British currency’s largest intra-day loss in more than nine-months.

During preparation of the report, early morning Asia-Pacific trading hours on Tuesday (July 30th), Pound sterling had lost 0.33 percent to $1.2178 against its American counterpart further, breaking off all critical support levels, while a daily closure below $1.2157 last seen on October 2016, would pave the way towards its record low figure against US dollar at $1.1972, suggested analysts.