Angela Merkel open to the idea to renegotiate the Irish backstop

27 August, 2019

Luke Dyson

After the Brexit progress last week with Angela Merkel open to the idea to renegotiate the Irish backstop. It has now given the markets that glimpse it has needed to put some strength back into sterling as now a deal being struck by the 31st Oct cannot be completely written off.

It has now created a lot of volatility for sterling and thrown some hope back onto the cards.

Following this, it has sent sterling rallying across the board. Sterling then becoming the top-performing major for the week, with three-week highs for Eur, USD!

If you were to transfer 100k GBP to Eur at the beginning of the week then to transfer at the end you would have been €1600 better off.

Following this GBP/EUR hit a key resistance at 1.1080, but could not hold or break.

For the week ahead Analysts suggest if broken Sterling Euro could well be on its way to the 25th July highs of 1.1240 providing Boris’s newfound progress is not shot down.

If you have any pending Fx for the near future, please don’t wait about and take advantage of these newfound highs. Sterling is being held up on the off chance a deal can be agreed in the next 30 days if not there is a large amount of downside potential awaiting.

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