British Pound Gains Ground on Brexit News

Market Reviews

The euro is trading as the second strongest currency for today, the US dollar is the third. Meanwhile, the British pound is the strongest major currency for today after UK Brexit Minister Dominic Raab statement. Australian dollar and New Zealand dollar are the weakest ones.

The euro rose after the release of Ifo data, which surpassed forecasts. The Munich-based Ifo economic institute said its business climate index fell to 103.7 in September from 103.9 in August. Economists had expected a decline to 103.2 level. It was also reported, that the current assessment indicator stood at 106.4 in September versus revised 106.5 a month ago. Nonetheless, the indicator was above the forecast of 106. At the same time, the expectations index came in at 101.0 in September, down from 101.3, but above the forecast of 100.5 points.

British Brexit Secretary Dominic Raab said that he was confident that the United Kingdom will make progress and eventually clinch a Brexit deal with the European Union. “We keep on negotiating in good faith, we try and get the best deal we can, but we are ready for all eventualities,” Raab told. “We’ll keep negotiating in good faith, I’m confident we’ll get there.”

Meanwhile, UK Prime Minister Theresa May’s spokesman said the cabinet is due to discuss Brexit negotiations today. And he emphasized “the cabinet gave its full support to the white paper (Chequers plan), and that continues to be the case.”

The global stocks were generally lower today. FTSE lost 0.22%, DAX fell by 0.31%, CAC dropped by 0.19%. Earlier today, Hong Kong HSI closed down 1.62%, Singapore Strait Times increased by 0.05%. Markets in China and Japan are closed.