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Positive Brexit Talks Boost GBP

• Posted by currencies in Bank of England, Bremain, Brexit, Currency, Dollar, Economy, EUR, Prime Minister, Referendum, Sterling, UK, Uncategorised
• May 1, 2019
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Sterling rose above $1.30, hitting a two-week high, after media reports that the tone of Brexit talks between the British government and the main opposition party had improved.

Prime Minister Theresa May is seeking a consensus with Labour to get a Brexit deal approved and wants talks to reach a conclusion by the middle of next week, several British journalists have reported.

The British currency had fallen to a two-and-a-half-month low last week as the dollar surged and worries mounted about a deadlock in talks over the terms of Britain’s exit from the European Union.

But the Times newspaper reported on Tuesday that May’s government has made substantive moves in Brexit talks with Labour, citing unidentified Labour sources.

The EU hopes Britain’s two biggest political parties will reach agreement on Brexit this week, possibly including membership in a customs union, the EU’s chief Brexit negotiator said.

The Bank of England announces its interest rate decision on Thursday. Traders will search Governor Mark Carney’s comments for signals that the central bank is ready to raise rates to tame inflationary pressures – although few analysts expect an increase before Britain’s departure from the EU is clearer.

Tonight, we have the Fed Meeting and then Powell will give a press conference straight after. With recent data from the US showing a healthy and improving economy he could mention future rate rises that could have a positive impact on the greenback.