Sterling reversed its gains and recorded a bearish day after the meeting between U.K. Prime Minister May and European Commission President Jean Claude Juncker failed to deliver agreements on Brexit. Also, the U.S. dollar had a strong red Monday and awaits the NFP report at the end of the week.
Sterling traded virtually unchanged against all the major currencies since Monday and early this morning. The British pound returned all the gains that earned on yesterday’s morning and weakened broadly after the meeting between U.K. Prime Minister Theresa May and European Commission President Jean Claude Juncker announced that an agreement had not been settled upon. Juncker referred that there still some issues that need to be handled and May stated that further discussions will take place during the week. Both were optimistic that an impending agreement was still likely. Moreover, in the U.K., the Markit Construction PMI released and ticked sharply higher in November to 53.1 from 50.8 the previous month, beating market consensus.
Shifting to the U.S., the greenback moved lower versus almost all the G10 basket as it failed to extend its gains during the NY session. The USD/JPY pair posted a negative week and struggled below the 50-day SMA again. The most important event for the dollar this week is the non-farm payrolls report on Friday only seven working days before the December’s significant FOMC meeting, which will have a strong impact on the market.
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