Most of the focus today will be on the BoE Governor Mark Carney’s speech and the ongoing Brexit talks. Sterling and euro remained virtually unchanged. Greenback traded gradually higher and hit our recommended target. WTI crude oil continues the sharp sell-off.
Brexit Negotiations in Progress; Sterling Remains Steady
After U.K. snap election, the Brexit negotiations started yesterday, with leader U.K. Prime Minster Theresa May. The Brexit talks will take some time before there are meaningful headlines. All eyes today will be on BoE Governor Carney’s speech at the Mansion House at 07:30 GMT. Sterling is lower today because investors know that Carney is generally more cautious than G10 peers. Also, the British pound during yesterday and early this morning traded higher versus the major currencies except against the U.S. dollar, the Canadian dollar and the Swiss Franc. The GBP/USD pair is still developing within a sideways channel and failed for another day in a row to climb above the 1.2820 critical resistance level.
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