Angela Merkel open to the idea to renegotiate the Irish backstop

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.

Economic Calendar

27/08/2019
07:00 German GDP
09:30 GBP BBA Mortgage Approval
14:00 US house price index

28/08/2019
07:00 German GFK Consumer Confidence
09:00 CHF ZEW expectations
10:40 German 10y bond Auction
12:00 USD MBA Mortgage applications

29/08/2019
08:55 German Unemployment
13:00 German CPI
13:30 USD GDP / GDP price index

30/08/2019
00:30 JPY unemployment rate
07:00 German retail sales
09:30 GBP Consumer credit
10:00 Eurozone core CPI
13:30 USD Core price Index
13:30 CAD GDP
15:00 USD Michigan consumer sentiment