Sterling loses steam against the buck but shines against the single currency…
Yesterday saw a pound which showed signs of running out of momentum against the greenback. GBPUSD peaked yesterday around the $1.3350 level before retracing over 0.5% in the afternoon to close the trading session around the $1.33 mark. Looking at the pound’s performance against the euro, we saw a daily gain of around 0.65% with the pair closing very near to the day’s highs, just above the €1.17 price.
Developments on the Brexit front were rather muted yesterday. The House of Commons passed the Cooper amendment, with a huge number of Conservative MPs abstaining and 20 MPs rebelling. The government had already accepted this amendment so the vote immediately lost its significance as a result. A no-deal scenario is being pushed further out of sight – it’s now time to decide whether a compromise can be found to avoid the need for an extension.
The highlights of yesterday’s trade, which most definitely caught everyone’s attention, was the meeting between Trump and Kim Jong Un as well as Trump’s previous lawyer, Michael Cohen’s, appearance before a congressional hearing. These events might not have had the biggest impact on the markets but there was no doubt they led to a cautious tone across the day. Cohen’s comments will likely distract Trump for the next few days who’ll will probably attempt to defend himself.
Today’s session sees a couple of important releases including regional eurozone GDP and inflation prints as well as a much anticipated US Q4 GDP release.
Written by Viv Savani. 8:22am, February 28th 2019
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