Bulls failed to capitalize on last week’s strong upsurge to over three-month tops. A goodish pickup in the USD demand added to the selling bias around the major. The intraday selling pressure around the British Pound remained unabated through the early European session on Monday and dragged the GBP/USD pair to daily lows, around the 1.2560-55 region in the last hour. Together with Thursday’s best single-day percentage advance since March, the pair posted the best two days of gains in over a decade.
Meanwhile, the optimism seemed to fade rather quickly in reaction to Irish Foreign Minister Simon Coveney’s comments earlier this Monday, saying that a deal is possible but we are still not there yet. Coveney’s remarks suggested prevailing differences between the two sides on the border between Ireland and the UK’s Northern Ireland. Hence, the key focus will remain on the EU leaders meeting on Thursday and Friday to see if a deal is still possible before October 31. Apart from Brexit-related uncertainties, the pair was further pressurized by a goodish pickup in the US Dollar demand.
As investors took a closer look to much-hyped breakthroughs from the crucial high-level US-China trade talks, a slight deterioration in the global risk sentiment seemed to benefit the Greenback’s relative safe-haven status against its British counterpart.
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