Sterling's selloff was the most decisive move last week. UK-EU negotiations seemed heading to a dead-end as UK published the so-called internal market bill, which violates part of the Brexit Withdrawal Agreement. WTO style of trade relationship after Brexit looks more likely than ever. Technical developments in Sterling pairs suggest that weakness would persist for the near- or even the medium-term. Swiss Franc and Yen ended as the strongest ones last week, with some help from selloff in the stock markets. In particular, it now looks like NASDAQ is ready for a deeper correction to digest the strong up trend since March. Euro and Dollar were mixed. ECB President Christine Lagarde refrained from sounding too concerned with Euro's appreciations. That kept EUR/USD in range. Dollar's next move, would now depend on overall risk sentiments, than the common currency. |
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