Sterling Tiptoes Up As PM May Seek Brexit Delay

Lloyd Doyle
April 11, 2019

Today, meanwhile, will see the publication of the United Kingdom manufacturing production figures from February and any signs of improvement could see Sterling rise.

"Finally, if we failed to agree on any next extension, there would be a risk of an accidental no-deal Brexit".

NZD may even be in for further weakness if upcoming USA inflation and Federal Reserve meeting minutes news impresses investors and dampens risk-sentiment.

The ecostat shows a surge in stockpiling given the Brexit uncertainty now in the United Kingdom and the possible threat to supply chains.

For now, investors are looking ahead to the major Brexit news and U.S. inflation data that is expected today.

The US dollar, meanwhile, has steadied against the pound as greenback traders await the raft of US economic data due out today. This would make it easier for GBP/EUR to rise if a Brexit delay is agreed. The Brexit talks look set to intensify on Tuesday with the UK PM Theresa May's meeting with German Chancellor Angela Merkel and French President Emmanuel Macron later today, building the case for another Brexit delay at the upcoming European Union summit on Wednesday and eventually provide some meaningful impetus to the major. The stronger growth was partially caused by Brexit stockpiling according to the report, so the growth outlook remains uncertain.

As other US data is mixed and global growth concerns persist, the US Dollar's demand is limited.

The Reserve Bank of New Zealand (RBNZ) has indicated that it could cut New Zealand Dollar exchange rates in the foreseeable future, with some investors betting it could happen as soon as the coming months.

The Pound to US Dollar (GBP/USD) exchange rate is seeing mixed movement this morning as investors anticipate the high possibility of major market-shaking news later in the day.

Brexit news has, however, weighed on the Sterling today with the President of the European Council, Donald Tusk, essentially rejecting Prime Minister Theresa May's delay for a shorter request and suggesting a longer delay from up to a year.

However, if the nations are unable to agree on a Brexit delay it would mean a no-deal Brexit becomes reality and the Pound would plummet.

Today has the potential to be the most important session this week for the Pound to Euro (GBP/EUR) exchange rate.

Other reports by Iphone Fresh

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