Email Facebook Twitter

Tech company Mporium delivers an outstanding set of Q1 results says CEO De Groot
IronRidge Resources CEO hails spectacular lithium project and money making potential for gold

Forex News

Sterling rises above $1.31 with Brexit talks in focus

Mon, 15th Apr 2019 15:35

* Brexit news slows, keeping sterling trading quiet

* This week sees UK employment, wages, inflation numbers

* Graphic: World FX rates in 2019

* Graphic: Trade-weighted sterling since Brexit vote

LONDON, April 15 (Reuters) - The British pound climbed above $1.31 on Monday, although trading was quiet without any significant Brexit-related developments.

Volatility in the pound has collapsed since European Union leaders and the British government last week announced Brexit would be delayed for up to six months.

That removed the immediate risk of a no-deal Brexit, but it also raised the possibility of months of uncertainty in Britain as politicians struggle over how - or whether - to leave the EU.

British Foreign Secretary Jeremy Hunt said on Monday that talks between the government and the opposition Labour Party to find consensus over a Brexit plan are more constructive than people think.

Goldman Sachs analysts said they believed there was still more upside than downside for the pound so long as the market focused on Brexit negotiations rather than macroeconomic news.

"Another extension to the Article 50 deadline lowers the probability of a quick resolution to the Brexit impasse, but we think the market seems to be taking this too far," they wrote in a note sent to clients.

"While slow, we see signs of progress in the negotiations, so there remains a meaningful chance that there is some resolution before the May 22 deadline."

Sterling rose 0.3 percent to $1.3100 by 1520 GMT. Against the euro, the pound was moderately lower at 86.27 pence per euro.

This week will offers more clues as to how the British economy is holding up in the face of prolonged uncertainty. Labour market data is due on Tuesday, inflation numbers for March on Wednesday.

"The UK labour market remains tight which should be reflected in the data on Tuesday," Sue Trinh, RBC's head of Asia FX strategy, said in a note. (Reporting by Tommy Wilkes and Tom Finn; editing by Larry King)

Next Article: FOREX-Dollar dips as European manufacturing data in focus

Back to Forex News

Share Price, Share Chat, Stock Market news at
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at

Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.