The pound is losing ground versus other major currencies during the early part of Tuesday’s trading session. Like a yo-yo, sterling ups and downs happen as negotiating posturing from the UK and the EU continues to alternate between promising and gloomy about a post-Brexit trade deal. Essentially, the markets appear to still be confident that there will be some form of agreement, judging by the current price of the pound in relation to other currencies. However, every time the outlook deteriorates, as both sides seem unable to avoid dabbling in hard-negotiating tactics, the markets price-in the increasing chances of no deal, only to then revert those losses as deadlines are extended and a more conciliatory tone is adopted.
Ricardo Evangelista – Senior Analyst, ActivTrades