Market Snapshot – Pounds Remains Strongest
Pound Likely to Remain Buoyed
The strongest instrument in the market for today continues to be the pound as has been the case over the past few days. The agreement over the Irish border is likely to give a huge boost to the Brexit talks and it is widely expected that some sort of deal would be announced in the next week or so over the deal and this should help the pound to hold steady. The market tends to overrun the good and the bad news and right now, we are seeing the markets price in the good news of a deal and that is the reason why we are seeing the pound being well bid all across the board over the last few days. This is likely to continue for the short term as the traders await the details of the deal.
Stock Markets Higher
Looking ahead to the stock markets, the European markets have been generally higher and the US stock futures also point higher for the day as the risk sentiment seems to have returned to the markets. The dollar is holding steady as the tax reform bill passes through the Senate and once it is fully passed, we should see a short term rally in the US stock indices. We also have a slew of data later in the week from the US and we also are likely to see a rate hike from the Fed as well, this month and all of these are likely to keep the dollar well bid during the short term.
This article was originally posted on FX Empire
