Sterling jumps, dollar falls on Brexit deal optimism

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Sterling jumps, dollar falls on Brexit deal optimism

On Tuesday, the 15th of October 2019, the Pound Sterling snowballed to its highest closing level since mid-May against the American currency following media headlines that the officials and lawmakers of the United Kingdom had been closing in a deal to divorce European Union within a scheduled Brexit deadline of 31st October after joining the ‘bloc’ back in the 1973s, which in effect would remark the United Kingdom’s most critical decision since World War II.

On top of that, adding further bullish wing to the British currency, a Bloomberg report published late on Tuesday (October 15th) that negotiators of both parties were expecting to reach a deal by Tuesday (October 15th) midnight.

Nonetheless, gains were capped following two EU officials had told to a press agency that a discussion over UK PM Boris Johnson’s draft Brexit deal had still been in a pre-matured state. Meanwhile, Pound Sterling extended its four-day long winning streak on Tuesday (October 15th), while the British currency had rounded off Tuesday’s (October 14th) market 1.02 per cent higher to $1.2756 against its American counterpart to jump above its 200-day moving average for the first time since May, a closely observed technical level which usually points towards further uphill momentum.

Aside from that, during midday European trading, Pound Sterling had hit its five-month-peak to $1.278, a level never seen since mid-May, while the British Currency had also jumped up to its five-month high to 0.863 pence against euro.

Besides, addressing Tuesday’s (October 15th) GBP rally against US dollar, an aggressive market reaction over optimism of a much-awaited Brexit, a senior FX strategist at Nordea, Morten Lund said on Tuesday’s (October 15th) market wrap-up, “The reaction from the markets shows they want to get this deal over and they are ready to push the button at the slightest sign of a deal. ”