Sterling hits a 3 Month High

Sterling hits a 3 Month High

Last week, sterling hit a 3 month high against the US dollar on the back of comments from the European Union that a divorce deal is close.

I get the feeling that the EU are starting to get a little worried that all the pressure and unrealistic demands on the UK over the last 12 months is not working as expected.

Fear is starting to kick in with the EU bureaucrats that the UK may well follow through on its promise to walk away without a deal. The ex UK Prime Ministers doing the rounds pushing for a second referendum were called out by May as being anti-democratic.

May is looking more defiant than ever with a rousing speech at the Conservative party conference vowing that “resilience and ingenuity of the British people will see us through’ and that “Britain isn’t afraid to leave with no deal if we had to”

This Wednesday the monthly GDP (growth figure) will be released in the UK with an expectation that it will be 0.1%, a big drop from last month’s 0.3%.

The GBPUSD fell about 60 pips when the market opened on Sunday evening as a result of buyers dumping GBP prior to the GDP announcement and profit taking from the previous week.

The GDP number will likely cause further falls in sterling in the coming days but it’s all really a sideshow in comparison to either a Brexit no deal, good deal or bad deal. All scenarios will create massive moves in the UK’s currency.

So if you are serious about making money here, you need to make sure you keep yourself informed as to what is going on or you will miss that biggest trade of the year.

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