The Sterling/Dollar exploded into extreme gains on Tuesday with prices clipping above 1.2400 after Prime Minister Theresa May’s optimistic Brexit speech signalled that the United Kingdom was seeking a deal which would satisfy both parties.
The heightened hard Brexit fears have triggered a steep Sterling selloff during the early trading hours of Monday with the British pound/U.S. dollar (GBP/USD) currency pair tumbling to a fresh three-month low at $1.1983.
Global stocks could edge lower on Friday if the renewed Donald Trump uncertainties encourage investors to maintain a cautious trading stance. Asian shares have already turned mixed following the soft China trade data which soured investor risk sentiment, while the rising Trump fuelled anxiety could obstruct gains in Europe.
The Greenback glided higher on Wednesday as investors prepared for Donald Trump’s anticipated formal news conference. With today’s press conference the first official one since the market shaking presidential victory in November, financial markets could turn volatile.
Stock markets were pressured during late trading on Monday after the heavy depreciation in oil prices soured investor risk appetite. Asian shares closed mixed on Tuesday as the terrible mixture of depressed oil, renewed China concerns and Trump jitters prompted traders to adopt a cautious stance.
Although some optimism over Trump’s fiscal stimulus boosting U.S. economic growth may elevate the markets, gains could be limited in the short term if anxiety heightens ahead of Wednesday’s news conference where President-Elect Donald Trump will take questions from the press.