Analysts at Scotiabank explained that Sterling has steadied on the session as investors continue to monitor the Turkish situation.
Key Quotes:
“PM May is reportedly considering maintaining key EU rules for longer after Brexit, effectively extending the “transition” period from March of next year.”
“The plan is aimed at addressing (or really postponing having to address) the issue of how to manage the Irish border post-Brexit. Time is running short for a solution to this issue but this sort of idea only makes PM May more vulnerable to attack from “hard Brexit” MPs from her own party.”
“Background Brexit risks remain a potential drag on the GBP’s broader performance.”
“GBPUSD short-term technicals: neutral/bearish – The pound has steadied in European trade but there is no real sign at this point that the pressure on spot is poised to reverse. Intraday bear trend momentum has weakened, leaving the market neutral and rangebound between 1.2725/1.2775.”
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