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By Associated FX Analysis Team

Kantox currency update: Brexit disagreement hits the pound

Published December 5, 2017

The pound sterling has dropped against most currencies over the latest sessions retreating from multi-week highs, with the market disappointment as the summit between UK Prime Minister Theresa May and European Commission President Juncker ended without an agreement on a Brexit deal.

The euro has remained moving within recent ranges, while the U.S. dollar has slowed down on its recent rally, with investors awaiting the next challenge for the  Tax Bill, the approval in the House of Representatives.

EUR/USD: flat at 1.1860. Euro reversal from Friday’s high at 1.1940 was contained on Monday above 1.1830, and the pair has consolidated in the mid-range of 1.1800. At London market opening times, the EUR/USD is trading at 1.1865.

GBP/USD drops sharply from 1.3500. The pound bounced up at 1.3420 on Monday and returned above 1.3500 to give away gains and return to one-week lows near 1.3400 later on, hammered by the lack of agreement in the meeting between May and Juncker. At London market opening times, the GBP/USD is trading at 1.3410.

USD/JPY rally stalls at 113.00. U.S. Dollar recovery from 111.00 lows last week ran out of steam on Monday, after hitting 113.00, and the pair retreated to the mid-range of 112.00, with investors cautious, awaiting further developments on the Tax Bill approval process. At London market opening times, the USD/JPY is trading at 112.65.

 

In the Calendar Today

 Today, In absence of more relevant data, the Markit Services PMI Indexes in UK and the Euro Area might provide some distraction for the investors and post a moderate impact on currencies.

In the afternoon, the focus will be on the U.S. ISM non-Manufacturing PMI, which is expected to show some deceleration on the services sector activity although still at levels consistent with a solid expansion.

09:00 GMT         EZ: Markit Services PMI Index (Nov)
Prev: 56.2            Cons: 56.2           

09:30 GMT         UK: Markit Services PMI Index (Nov)
Prev: 55.6          Cons: 55.0           

 15:00 GMT         U.S: ISM Services PMI Index (Nov)
Prev: 60.1          Cons: 59.1


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