The British pound is recording gains
The British pound is recording gains versus other major currencies, particularly the euro, during early Friday trading. Sterling’s gains are due to an improvement in risk appetite, with risk related assets in general performing well, and also some optimism surrounding the ongoing Brexit negotiations after David Frost, the UK chief negotiator, said that an agreement with the EU could be possible in September.
Ricardo Evangelista – Senior Analyst, ActivTrades
Shares drifted lower in Europe for the last trading session of the week, as bullish directionality fades due to low volumes and rising uncertainty. Even if today’s positive data from China reassured investors that the recovery remains on course there, most market operators betting on further fiscal stimulus measures in August feel disappointed by the lack of an agreement between the Republicans and Democrats in the US. In the meantime, traders and analysts are patiently waiting for new discussions between the US and China as these talks could lead to sharp price action on risk assets, depending on the tone and potential outcome of these negotiations. Having said that, today’s trading stance is likely to be “wait and see” even if US Retail Sales data for July may bring increased volatility at the end of the European trading session and ahead of the weekend.
Pierre Veyret– Technical analyst, ActivTrades
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