28.08.2019: EUR holds on, while GBP slides (EUR, USD, GBP, GOLD)

The pound is weakening but continues to trade
near its monthly high. The hope for Brexit deal supports the sterling. Euro bulls strive to gain profit after yesterday’s losses. The euro/dollar pair has advanced today and is trading at 1.11. On Tuesday, the quotes were under pressure after the drop of EUR/GBP. Jeremy Corbyn,the leader of the opposition Labor Party of Great Britain, made it clear that he was doing everything possible to prevent a no-deal exit from the EU. The pound was the only major player to gain profit against the dollar. The GBP/USD is declining but still showing a tendency to increase. The quotes are just above the 1.22 level. Despite the positive market sentiment, there is still a risk of a no-deal Brexit. Jeremy Corbyn has inspired pound traders, however, the British Prime Minister has the final say. The market participants are doubtful about the deal between Boris Johnson and Brussels. In case the opposition passes the law that forces Johnson to ask for Brexit delay, the pound will bounce back. This, however, will not effect the situation in general. Investors remain wary of the new escalation of the trade conflict and the risk of the global economic downturn. Even though the traders’ sentiment has slightly stabilized, this may well be a short-term improvement as China is likely to respond to the latest US actions. Given this, safe-haven assets have positive prospects. Gold is gaining profit and is trading at $1,552 per ounce. Analysts expect gold to rise to $1,800 per ounce amid its growing demand.

Leave a Reply

Your email address will not be published. Required fields are marked *