Stock

Pound rallies as danger asset leap, however Brexit issues will reappear, JPM says

© Reuters.

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).

Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real-time or correct. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trade losses that you may incur from using this data.

Fusion Media or persons dealing with Fusion Media are not liable for any loss or damage caused by reliance on the information contained on this website such as data, offers, diagrams and buy / sell signals. Please be fully informed about the risks and costs associated with trading on the financial markets. This is one of the most risky forms of investment that is possible.

Related Articles