Foreign Exchange Daily Market Update 11/01/2018

Thu, January 11, 2018

Pound weakens for a fourth day as divisions in Brexit.

Sterling drops off for a fourth day as Chancellor Philip Hammond has asked the EU to indicate what future trade relationship it wants.  Brexit has uncertainty helped propel a seismic drop in London finance job vacancies.

Sterling has weakened as weak economic data and continued signs of divisions between the two sides in the Brexit talks. Recruitment firm Morgan McKinley said an annual 37% decline in job openings in December highlighted the looming “Brexodus” from the City of London.

A EU chief negotiator has said that UK should have limited access to EU markets, while the U.K. continues to call for parity for the financial services after Brexit. Many companies have voiced their concerns at the lack of progress on a post-Brexit trade deal and Hammond said that many feel the U.K. has “little, if any” sign of what kind of agreement the EU wants.

The pound increased by almost 10% against the dollar in 2017 but some are now saying that it has reached its peak. Sterling may hover close to current levels at $1.35 by year-end.

Sterling fell 0.1% to $1.3494 against the dollar, taking its weekly decline to 0.6%. It weakened 0.1% to 1.122 against the Euro.

Data to look out today.   

Not much data due out today.

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