Investing.com – The pound was up against the dollar on Monday, continuing to rely on fluctuations in rising US stocks, but concerns about Brexit will soon return as the main driver of the sterling, JPMorgan (NYSE 🙂 said.
rose 0.67% to $ 1.2649.
Cable has found its base since falling three weeks in a row since June 21. The currency pair traded as risk assets is rising in parallel with US stocks. This correlation is understandable given that the UK is "the largest capital importer within the G10," JPMorgan said.
However, as stocks move into sectoral trading and the Brexit process will intensify over the next few months, it can be expected that "the GBP will become less dependent on general risk sentiment and therefore decouple from other highs." -beta currencies, "added the bank.
The recent pound in the pound is coming, although further reports indicate that the risk of Britain leaving the European Union without an agreement continues to grow.
When the UK and EU resumed talks on an agreement in London on Monday, former President of the EU Commission Jean-Claude Juncker claimed that British Prime Minister Boris Johnson "intentionally" pushed for a no-deal Brexit.
The pound was also supported by persistent signs that demand for the dollar remains slack.
The dollar's net short positions (declining positions) rose 9% in the week ending July 14, reaching their highest level in three weeks, according to the Commodity Futures Trading Commission (CFTC).
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