{"id":6079,"date":"2019-09-20T04:57:09","date_gmt":"2019-09-20T08:57:09","guid":{"rendered":"https:\/\/currencylive.com\/?p=6079"},"modified":"2019-09-20T04:57:09","modified_gmt":"2019-09-20T08:57:09","slug":"101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\/","title":{"rendered":"GBP\/USD: Juncker\u2019s Brexit Optimism Sends Pound To 2 Month High"},"content":{"rendered":"

Brexit optimism lifted the pound to a two-month high versus the US dollar. The pound US dollar exchange rate rallied across the previous session, closing 0.4% higher and is continuing to charge northwards in early trade on Friday. The pair hit an intraday high of US$1.2582, a level last reached in mid-July.<\/p>\n

The pound surged following reports that European Commissioner Jean-Claude Junker thinks that a Brexit deal could still happen. The pound was the strongest performer versus a group of 10 peers (G-10) after Juncker said that he was doing everything possible to avoid a no deal Brexit, which he considered would be \u201ccatastrophic\u201d.<\/p>\n

This is the most optimistic that Juncker has sounded regarding a Brexit deal for months. As investors reassess the probability of avoiding a no deal Brexit the pound rallied. Juncker\u2019s comments come following a report by the OECD detailing the impact that it believes a disorderly no deal Brexit will have on the UK economy. The OECD forecast a 3% drop in UK GDP which would see the UK tumble into recession.<\/p>\n

Today investors will focus on Brexit talks between EU chief negotiator Michel Barnier and UK Brexit Secretary Stephen Barclay. Investors are clinging to every headline, as they try to ascertain if an economically damaging no deal Brexit can be avoided.<\/p>\n

 <\/p>\n\n\n\n\n
Why is a \u201csoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit?<\/strong><\/td>\n<\/tr>\n
A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e. immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound-friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/strong><\/p>\n

Dollar Softens On Quiet Data Day<\/strong><\/h3>\n

The dollar surrendered Wednesday\u2019s post FOMC gains in the previous session, despite encouraging data. The dollar dipped even as figures showed that the US labour market remained resilient. US jobless clams increased by 208,000 in August, below the 213,000 analysts forecast. Existing home sales were also upbeat, increasing 1.3% month on month in August, well ahead of the -0.7% decline forecast.<\/p>\n

After a very busy week for data and central bank announcements, today is much quieter. The focus will likely be on developments in the Middle East. US Secretary of State Mike Pompeo has been in Saudi Arabia discussing a response to Iran\u2019s attacks on Saudi oil infrastructure. Any hints of a strong retaliation could raise fears of an all-out war in the Middle East. Any signs of increased geopolitical tensions could boost the dollar, the reserve currency of the world, as investors look towards safe havens.<\/p>\n

 <\/p>\n\n\n\n\n
What do these figures mean?<\/strong><\/td>\n<\/tr>\n
When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute.<\/p>\n

For example, it could be written:<\/p>\n

1 GBP = 1.28934 USD<\/em><\/p>\n

Here, \u00a31 is equivalent to approximately $1.29. This specifically measures the pound\u2019s worth against the dollar. If the US dollar amount increases in this pairing, it\u2019s positive for the pound.<\/p>\n

Or, if you were looking at it the other way around:<\/p>\n

1 USD = 0.77786 GBP<\/em><\/p>\n

In this example, $1 is equivalent to approximately \u00a30.78. This measures the US dollar\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the dollar.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

 <\/p>\n

This publication is provided as general information only and is not intended as an exhaustive treatment of its subject. TransferWise Inc. and its affiliates (“we” or “us”) expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of this publication, and you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from us.\u00a0 We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.<\/em><\/h6>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Brexit optimism lifted the pound to a two-month high versus the US dollar. The pound US dollar exchange rate rallied across the previous session, closing 0.4% higher and is continuing to charge northwards in early trade on Friday. The pair hit an intraday high of US$1.2582, a level last reached in mid-July. The pound surged […]<\/p>\n","protected":false},"author":163946597,"featured_media":4487,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379,1381],"tags":[1386,1408,1394,1536,1539,1537,1406,1391,1392,1397,1398],"class_list":{"0":"post-6079","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"category-usd","9":"tag-brexit","10":"tag-fed","11":"tag-gbp","12":"tag-jobless-claims","13":"tag-juncker","14":"tag-middle-east","15":"tag-no-deal","16":"tag-pound","17":"tag-sterling","18":"tag-us-dollar","19":"tag-usd"},"acf":[],"yoast_head":"\nGBP\/USD: Juncker\u2019s Brexit Optimism Sends Pound To 2 Month High - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"GBP\\\/USD: Juncker\u2019s Brexit Optimism Sends Pound To 2 Month High\",\"datePublished\":\"2019-09-20T08:57:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/\"},\"wordCount\":753,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100431-gbp-eur-brexit-deal-eu.jpg\",\"keywords\":[\"Brexit\",\"fed\",\"gbp\",\"jobless claims\",\"juncker\",\"middle east.\",\"no deal\",\"pound\",\"sterling\",\"us dollar\",\"usd\"],\"articleSection\":[\"GBP\",\"USD\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2019\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/101163-gbp-usd-junckers-brexit-optimism-sends-pound-to-2-month-high\\\/\",\"name\":\"GBP\\\/USD: Juncker\u2019s Brexit Optimism Sends Pound To 2 Month High - 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