Markets News 

Dollar remains a tad softer ahead of European markets open

“The more optimistic sentiment is helping to boost currencies like the aussie and kiwi on the day so far” reports forexlive.com. The greenback is joined at the bottom of the pile by the Japanese yen as both currencies are trading softer as markets remain hopeful of further progress in trade talks between US and China later this week.Nonetheless, the pound remains more perky than it was last week, as cable shifts back above the 100-day moving average and the near-term bias is favouring buyers more currently. Looking ahead, we may…

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News 

Why a cheaper pound is not always a good thing

“Why is a cheap pound not necessarily a good thing?” writes Economics Correspondent for telegraph.co.uk. A cheaper pound will boost exports. If the value of the pound falls, then the car will be cheaper for foreign buyers….As trade has become more global, supply chains for both goods and services have become tightly integrated.Take, for instance, a car built in the UK. Its parts are bought worldwide and paid for in pounds. Source: telegraph.co.uk

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GBP Markets News 

Euro also vulnerable to a hard Brexit – BofAML

“In a note to its clients, BofAML notes that a hard Brexit would also be a shock for the Eurozone economy at a time when momentum is already slowing” reports forexlive.com. The firm argues that this would present a downside case not only for the pound but for EUR/USD and EUR/JPY as well.”If a hard Brexit triggers a recession in the weak parts of the Eurozone, such as in Italy, the economy may be affected more than markets currently expect”, says the note.Adding that “if markets question the sustainability of…

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GBP Markets News 

London markets lifted by weak pound; Brexit and trade talks loom

“Investors will also keep an eye on trade talks between the Trump administration and China, set to start in Beijing on Monday” writes Emily Horton for marketwatch.com. London markets rose Monday, lifted by a weaker pound, which sagged over increasing concerns over Britain’s exit from the European Union and fresh data showing sluggish growth in the final quarter of 2018. Source: marketwatch.com

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GBP News 

British pound slips as Bank of England leaves rates unchanged, cites global growth and Brexit uncertainties in policy update

“The monetary policy response to Brexit, whatever form it takes, will not be automatic and could be in either direction.”” writes Markets Reporter for marketwatch.com. The British pound GBPUSD, +0.3248% dropped on Thursday following the Bank of England’s first monetary policy update and inflation report of the year, in which it left interest rates unchanged, in line with market expectations.The central bank said that a continued, gradual tightening of monetary policy was necessary given its forecast for inflation, but warned of various factors weighing on the U.K. economy.”UK economic growth…

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GBP Markets News 

Sterling ignores market talk, pushes higher on the day

“Despite such jitters, cable is holding up well on the day as price moves back up to the highs now” reports forexlive.com. I wouldn’t call this a real turnaround in the pound just yet and I’ll still be inclined to add to shorts closer to 1.3000 if we get there.There’s a double-bottom pattern formed for a short-term trade potentially but as long as price sits under 1.3000, I’d be more inclined to view further downside for cable in the near-term. Source: forexlive.com

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GBP News 

Pound falls after weak PMI prints signal flat-line in UK economy

“The print is the lowest since July 2016 and highlights the kind of weight that Brexit uncertainty is putting on the UK economy” reports forexlive.com. A series of weak PMI prints that began from last week is taking its toll on the pound as the composite reading seen today comes in at 50.3, near flat levels of economic activity. Source: forexlive.com

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GBP News 

Just weeks to make a deal — what’s next for Brexit

“Nikolay Markov, senior economist at Pictet Asset Management, deems a last-minute approval of the existing Brexit deal without any amendments as the most likely scenario” writes Markets Reporter for marketwatch.com. At the same time, lawmakers voted to rule out a no-deal Brexit and to replace the Irish border backstop with an alternative solution.Market expectations are that a no-deal Brexit will be avoided, which has put a floor under the ailing British pound GBPUSD, -0.0689%  in recent weeks, despite volatile flare-ups now and again.Besides the U.K., the likes of Germany and…

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