12/11/2018 – Pound Falls On Brexit Doubts


Sterling fell on Friday as doubts resurfaced over the timing of an imminent Brexit deal. Reports alluded to the border issue remaining far from resolved, and the DUP stated that alarm bells had been raised and that it would not support a Brexit deal that divided the UK. The pound continues to move off Brexit rumour and speculation, with all eyes now on whether the Irish Border issue can be resolved before the end of November, and in a way that will satisfy May’s prominent critics within Parliament.

We also saw the release of the UK GDP figures, which signalled the UK economy growing at the fastest rate since late 2016. GDP grew by 0.6% in the three months to September, with warm weather boosting consumer spending. However, it is worth mentioning that despite it being the strongest quarter for nearly two years, the economy didn’t keep up the strong momentum of July as August and September both registered no additional growth. Despite the positive headline figure, the market was focused on Brexit-related news.


We saw the Dollar bounce back against its major peers on Friday, after the weakness that followed the U.S. congressional elections. The aftermath of the Fed Meeting was the main mover of the greenback as Fed members reaffirmed its plan to continue raising interest rates, and cited the robust U.S. economy and strong jobs market as key to the rate hike path.

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