GBP moves lower on Brexit worries

Headlines

  • GBP moves lower on Brexit worries
  • Euro slightly higher on Monday morning

GBPUSD 1.3870 GBPEUR 1.1295 EURUSD 1.2279 USDCAD 1.2569 GBPINR 89.18 GBPAUD 1.7735 GBPAED 5.09

Poun

  • (Reuters) - Sterling erased recent gains and slid against the dollar and the euro on Friday after the European Union’s Brexit negotiator warned Britain that a post-Brexit transition deal was “not a given”. The pound enjoyed a bounce on Thursday when the Bank of England said interest rates probably needed to rise sooner and by more than it previously thought, as global growth helped the UK economy. Markets moved to price a 70 percent chance of a rate hike in May, up from 50 percent.
  • But the British currency quickly reversed those gains on Friday after the EU’s Michel Barnier said London had “substantial” objections to the EU’s transition offer and that parts of it were not up for negotiation

Euro

  • (Reuters) - The euro edged higher on Monday and the dollar fell back, as a bounce in equity markets ended a strong run for the greenback in which nervous investors had rushed to reverse their bets against the U.S. currency.
  • Some appetite for risk-taking crept back into currency markets after last week’s slump, helping higher-yielding emerging market currencies as well as commodity-linked currencies like the Australian and Canadian dollars, although the gains were limited.

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